Getting sick or injured can put all sorts of burdens on a family, including unexpected medical costs. Those costs should not be compounded by overly penalizing a consumer’s credit score. Given the role that credit scores play in consumers’ lives, it’s important that they predict the creditworthiness of a consumer as precisely as possible.
Specifically, the study found that credit scores underestimate creditworthiness of consumers who owe medical debt by 10 points. For consumers who have paid off medical debt, credit scores underestimate creditworthiness by up to 22 points.