Credit-score provider VantageScore Solutions said it will stop factoring all medical debts that are in collections into its scores, The Wall Street Journal reported Aug. 10.
The change is expected to take place in October, according to the report. The company said millions of people with medical debt in collections could see scores increase by as much as 20 points.
VantageScore's decision comes after it found that medical collections are not good at predicting a person's likelihood of repaying other debts, CEO Silvio Tavares told the Journal.
More than 2,600 lenders and other financial institutions use its scores, according to the report.
VantageScore is owned by Equifax, Experian and TransUnion, according to the report. It competes against Fair Isaac Corp., the creator of FICO credit scores, which are more widely used.