FICO recently announced upcoming changes in credit scoring.
In the past, if you paid debts that went into collection, it stayed on your FICO record for seven years which is the same period as bankruptcy. With the changes, paid collections debt will not show up on your credit history.
Medical debt is a major reason many people have debt in collections. Another change will give less weight on medical debt than other debt when determining the credit score.
With a higher credit score, most borrowers are more likely to be offered lower interest rates. Along with lower interest rates, the FICO score has also become a factor in insurance rates, renting an apartment and something being offered a job.