As of January 2023, VantageScore will no longer use medical debt or medical collection information in the calculation of VantageScore 4.0 credit scores. As of July 2022, medical collections that are paid or are younger than one year were removed from the credit files. Furthermore, as of 2023 first quarter it is also expected that medical collections with an original amount of less than $500 will also be removed from the credit files. As a result of these reporting changes, 75% of medical collections on file at the CRCs will be removed. Therefore, VantageScore performed thorough analysis around the impact on model predictive performance and consumer. Given minimal effects on predictive performance and benefits to borrowers, VantageScore decided to remove all medical collections from the VantageScore 4.0 calculations. This decision has been widely supported and the White House has signaled that it intends to remove medical debt from use in all federally granted loan products.
For more information, see our White Paper on medical debt and the changes to VantageScore.