About a year ago I worked with a client who was trying to buy a home, but the deal he found didn&39;t work out. We agreed to keep in touch until he found another property. At the time his credit scores were excellent, in the high 700&39;s.

As it happened, over a year passed until he called again, and we resumed our relationship.  When I asked for an update on what he had been doing, I was shocked when he said, "I had a brain tumor removed." As it turns out, medically everything went great and he is recovered and back at work.

I dont know how much the medical bills are to remove a brain tumor. $100,000? $200,000? Maybe higher. But I know it&39;s a big number. Luckily, his excellent company provided health insurance paid all the bills.

But there was a problem with the payment of one medical bills and someone referred a $25 bill, maybe for 6 band-aids, to a collection agency. The result? That one small blemish on his credit report lowered his FICO score 100 points!!!!

I can still get him a loan, but he might miss incentive compensation he would have gotten with his higher score.  Missing a .25 point incentive on a $400,000 loan would mean having to pay $1,000 more. Because of a $25 error that actually may not even be true.

Ludicrous? I think so.