FICO Changes May Raise Your Credit Score

The company will change how it calculates credit scores

Fico (FICO) is making changes to how it calculates credit scores.

Source: Flickr

The San Jose-based company said in a statement that it will raise the median score for consumers by 25 points if an unpaid medical bill is their only major delinquency. Fico is also being more lenient towards late accounts that have already been paid-off.

A January report by the National Center for Health Statistics at the U.S. Centers for Disease Control and Prevention said that 25% of U.S. families struggled to pay medical bills in 2012. The report also showed that 10% said they had costs they couldn’t pay at all.

FICO scores are the most widely used method of calculating credit scores in the U.S. The company said that 90% of U.S. consumer lending decisions use the company’s scores.

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