How the New FICO Score Model Will Increase Your Credit Score…Or Not

Everyone is beyond excited about the announcement of the new FICO Score model. All of the headlines explain that with this new model your credit score will jump dramatically and all of your credit issues will be gone. However that is not the case.

FICO is the most widely used credit score in the United States. The new model FICO 9 (the previous model was FICO 8) has two new features that for some will provide a nice increase in their credit score.  In the previous credit score model, there was no difference between medical and non-medical bills that have gone into collections.  With the new model, medical bills that have gone into collections will not carry as much weight on your credit score as before.  The other major change is that accounts which have gone into collections but are now marked as paid will completely be disregarded.

So the big question is will these changes allow you to see a increase in your credit score…and the answer is maybe!  If your current credit score is lower due to medical bills or any other bills that have gone into collections but are now paid, they you will likely see a nice increase in your score under this new model. The average increase in this case being 25 points.  If this is not what is weighing your score down, then you will probably not see a change.

To increase and maintain your credit score, all you need to do is the following:

  • pay your bills on time,
  • only apply for credit that you need
  • maintain a balance below 30% of your total available credit at all times
  • if your accounts go into collections, don’t duck your creditors talk to them and work something out

Also, be sure to look at your credit report at least annually by going to or use free apps like to monitor your credit score.

Dominique Broadway

Dominique Broadway is an award winning Financial Planner, Personal Finance Coach, Speaker, Finance Expert, Entrepreneur

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