FICO is updating its credit rating system to reduce the impact of unpaid medical bills on your credit score than previous models. In addition to that, medical bills that go into collections but are paid off won’t be factored at all into consumers’ scores. If your credit score is being affected by either of these factors, you could see a jump when the FICO 9 model is released in the fall of 2014.
Whether or not your score will rise when FICO 9 goes into effect depends on the factors that are affecting your score right now. However, because of the new rating model, people with a score of 711 - and an otherwise clean credit history, except for unpaid medical debts - may see their credit score rise by 25 points. But consumers whose credit files are tarnished only by unpaid medical debts that went to collection agencies, but were ultimately settled or paid, will likely see a great increase in their scores.
So remember, you have the power to boost your score by making smart moves, including:
Pay your bills on time
Keep the balance on your credit cards below 30% of your total credit limit at all times (i.e. if you have a limit of $1000, try to use only up to $300 of it)
Keep a good mix of credit accounts on your credit report
Apply only for credit that you actually need.