Millions to get break in new credit score calculation

August 8, 2014 8:54 PM

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The formula for calculating the most widely used credit score will soon change to lessen the impact of bad medical debts and old accounts that are paid off.

FICO, which creates the most-used credit scores, said this week its new model offers “a more nuanced way to assess consumer collection information.” It ignores paid collection agency accounts and differentiates medical from non-medical collection accounts.

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