Major Credit score provider drops medical debt.
By The Exchange Team
One of the two major credit score providers will remove medical debts from its scoring algorithms to help the financially weak.
VantageScore will remove medical collected data from VantageScore 3.0 and 4.0 by mid-October.
The change might raise the credit ratings of some Americans by up to 20 points, according to the company.
"Medical collections accounts have no major impact on creditworthiness for a wide segment of the population." said Silvio Tavares, CEO of VantageScore,
Equifax, Experian, and TransUnion recently revealed plans to delete settled medical debt from 70% of people' credit records.
According to CFPB study, one in five consumers had unpaid medical expenses.
Medical collections were less predictive of future payback risk than other collections, the watchdog found.