VantageScore

Is Medical Debt Highly Unhealthy for Your Credit Score?

Posted on 05/21/2014 by |Senior Editor, Money Team | Comments

Bulletin Today | Money & SavingsAre consumers’ credit scores unfairly dinged by medical debt? The Consumer Financial Protection Bureau thinks so. The agency released a new report that says unpaid medical debt sent to collections – and appearing on credit reports – can overly penalize consumers. Credit scores, generated by information in credit reports, are three-digit numbers that try to predict a consumer’s likelihood of paying bills. The higher the number, the better. Businesses use scores to decide whether to extend credit and at what interest …