Your credit score in 2026 won’t be calculated the same way it was in 2025. Several major changes are being implemented that could significantly impact your score – for better or for worse – depending on your financial habits.
Here’s what you need to know about each change and what it actually means for your debt situation.
A credit score is just a number. Don’t let the fear of that number stop you from doing what’s right for your financial future.–Steve Rhode
Medical debt disappears from credit reports
The Consumer Financial Protection Bureau has finalized a rule that would completely remove medical debt from credit reports. This is the biggest consumer-friendly change in years.
15MAmericans affected
+20Average score increase
Under the new rule, credit reporting agencies cannot include medical debt in reports sent to lenders, and lenders cannot use medical information in credit decisions. The CFPB found that medical debt offers “little predictive value” about whether someone will repay other debts.
This change is expected to result in approximately 22,000 additional affordable mortgage approvals annually. If you’ve been denied a mortgage because of medical debt, that obstacle disappears.
New scoring models: FICO 10T and VantageScore 4.0
Both major credit scoring companies are introducing new models that fundamentally change the way your score is calculated.
What’s new
- Trend data: It looks at 24 months of behavior, not just a snapshot
- Alternative data: Rent, utilities and phone bills can now help improve your score
- BNPL Tracking: Buy now, pay later purchases appear in reports
- Consistent payments rewarded: Paying above the minimum amounts matters more now
What could hurt you
- Increasing debts visible: The pattern of increasing balances is clearly visible
- BNPL late payments: These “4 Easy Payments” can now claim your credit
- Quick fixes less effective: You can’t just pay off debt right before you file
The trended data approach means lenders can see whether you are continuously improving your financial situation or slowly sinking deeper into debt. If you have steadily paid off the balances, you will be rewarded. If your credit card balance increases month over month, that pattern will show.
Rent and utility payments now count
For years, people have complained that paying rent on time doesn’t help your credit score, while missing a mortgage payment destroys it. That is finally changing.
- Rental payments can now be included in credit scores
- Utility payments (electricity, gas, water) can help build credit
- Phone service payment history now counts
This is huge for people with “thin” credit files – the estimated 45 million Americans who don’t have enough traditional credit history to generate a score. If you’ve been a reliable renter but never had a credit card, you can finally get recognition for that responsibility.
Fannie Mae is eliminating credit score minimums
On November 15, 2025, Fannie Mae eliminated the minimum credit score requirement for mortgages. Instead of applying a hard limit, they look at the whole picture: your reserves, debt levels, ownership characteristics and the purpose of your loan.
About 5 million potential homebuyers could benefit from these changes, especially first-time buyers and young adults who haven’t had time to build an extensive credit history.
What this means if you’re drowning in debt
Let me be direct: these changes are helpful, but they will not solve a debt problem.
If you’re struggling with debt, a higher credit score from removed medical bills doesn’t change the math. You still owe the money. The collectors can still come after you. You may end up qualifying for more debt, which is often the last thing you need.
- Medical debt restructuring: The score improves, but you still owe the debt
- Trend data: Rewards paying off debts, exposes accumulating debts
- Alternative data: Helps consumers with thin files, but adds new ways to hurt your score
The fundamental principles haven’t changed: debt is math, not morality. These score changes are tools – useful as you move toward financial stability, but not a solution to an underlying debt problem.
If your debt situation is overwhelming, don’t focus on optimizing your credit score. Focus on solving the underlying problem. Take my free Find Your Path quiz to understand which debt solution actually suits your situation.
Key Takeaways
- $49 billion in medical debt will be removed from credit reports – automatically, without any action required
- New FICO 10T and VantageScore 4.0 models track behavior for 24 months and reward consistent improvement
- Rent, energy and telephone payments can now help build credit for consumers with a thin file
- Buy now, pay later purchases show up on credit reports; late payments are harmful to you
- Fannie Mae eliminated minimum credit scores and instead used a broader risk assessment
- These changes help creditworthy borrowers, but do not solve underlying debt problems
Frequently asked questions
When will the 2026 credit score changes take effect?
The CFPB medical debt rule takes effect 60 days after publication of the Federal Register (announced January 2025). FICO 10T will launch in early 2026. VantageScore 4.0 is already available for Fannie Mae and Freddie Mac. Fannie Mae eliminated minimum credit score requirements on November 15, 2025.
Will my medical debt be automatically removed from my credit report?
Yes. Once the CFPB rule takes effect, credit reporting agencies will be required to remove medical debt from reports sent to lenders. You do not need to file any disputes or take any action; this should happen automatically.
Do I still have to pay medical debt that has been removed from my credit report?
Yes. The rule removes medical debt from credit reports, but you still legally owe the debt. Collectors can still pursue payment, sue you, or attempt to garnish wages. The guilt doesn’t go away; it just no longer affects your credit score.
How does trend data affect my credit score?
Trend data looks at payment patterns over 24 months rather than a single snapshot. If you’ve been consistently paying off debt and making payments above the minimum amounts, your score will improve. If your balance increases month after month, that negative pattern becomes visible to lenders.
Will Buy Now, Pay Later Hurt My Credit Score?
It depends. Under the new rules, BNPL transactions will appear in credit reports. Paying on time can improve your score by demonstrating responsible payment behavior. If you miss or default on payments, it will negatively affect your score, just like any other missed payment.
(Source: Consumer Financial Protection Bureau)
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