The credit scoring system may be changing for the better, at least for consumers with a shakier credit history. FICO has introduced their new credit system that is aiming to be more loan friendly towards clients with past, but paid-off debts as well as those with medical debt. The new FICO scoring system will take settled bills into consideration when adjusting someone’s credit score. If someone had owed money in their past, with the old system, their credit could be retroactively affected for seven years. Now, old, but paid off bills should not affect their credit score as much as before.

            The new FICO system will also remove the negative effects of having unpaid medical bills. Currently, 64.3 milion Americans’ credit scores are affected by these unpaid medical bills. By removing the negative impact of medical debt, some Americans may see their credit scores raise by 25 points. Considering that FICO scores are used to determin loan decisions around 90 percent of the time, many more people may find themselves eligible loan. Even more people will see their own rates lower, especially if they had been receiving less than friendly rates from banks. These new rates could greatly increase the number of Americans receiving loans and buying cars and houses.