How much do unpaid medical bills affect your credit?

Question

I have pretty good credit, but most of what remains unpaid is medical. Even if you pay on it, if it's not paid in full within 6 months, it goes on your credit report. That infuriates me when I'm working my rear off to make payments. Is it worth it?

Answer 1

A medical collection is the same as any other collection - bad for your credit. Once a medical bill (or any bill for that matter) goes as far as collections your credit is going to take the hit for it.

Medical facilities and doctor's practices will NOT hold on to unpaid accounts for more than 90 days. It is a pretty standard policy for healthcare billing. If you can't get a bill paid in 90 days or less, chances are pretty good its going to go to collections, that's just the way it is. Medical providers just are not going to wait years to be paid at $15, $20, $25/mo , especially for a large bill.

Answer 2

Here's a few suggestions from a credit union employee -

One mistake that a lot of people do is dispute the bills with their insurance, usually while the bill ends up in collections. If you're going to dispute, do it while you're paying it! It's best to avoid any collection on you credit.

Medical bills don't show up on credit besides under collections. Here's the encouraging thing - credit bureaus show the date the collection originated, the orginial balance, and the current balance. This means a lender can tell that you are paying your balance because say you had $5000 in unpaid medical, and now you owe $1000, that's going to show. They don't show on your credit the same as trades - credit cards, loans, mortgages show your actual payment history, where as there's no history shown on collections. Also, I used to work in lending, and I can assure you, most lenders aren't too worried about medical loans.

One more word to the wise, collections don't seem to be updated as often as other trades. Therefore, when you've paid it off, wait a bit then get a copy of your bureau. Make sure it shows a 0 balance. Then know that it can stay on there for 7 years.

Answer 3

If the medical facility or billing company comments the unpaid costs to a credit reporting company they do! if you're low income, some medical facilitys do have a income kind to fill out and infrequently they do waive costs or knock the invoice down somewhat. you should the contact the position that you've the invoice with and grant to make $5 funds both by utilizing the month or week, it really is extra on your budget to carry your invoice, than it really is to exhibit it over to a set company.

Answer 4

Yes, it's worth it. As long as you are paying on it, when you apply for a car loan, home loan, etc. just tell them upfront that you have good credit, but are continuing to make payments for the medical bills. Creditors understand that type of situation and won't hold it against you especially if you aren't just ignoring those medical bills. Good luck.

Answer 5

They will hurt you..not as much. I paid off a medical...got it off my reports ($296) my scores went up 22 points..it was 2 years old

Answer 6

all u need to do is pay $5 a month to your docs and they cant do anything. when i was sick that is all that i could afford