how much do unpaid hospital bills effect your credit???

Question

the reason i ask is b/c somebody told me that lenders dont pay much attention to medical collections.....IS THIS TRUE?

i pulled my credit report and was able to see several medical collections. i was unaware of this and while i was trying to track down my debts to pay them, i just felt like i was being tossed around by collection agencies. im not sure if i should stress about trying to figure all this out and get these medical bills paid or what. other than that my credit is great. what should i do?

Answer 1

According to credit law… Medical Bills fall into a different category since it's not like you voluntarily got sick.

For example, you voluntarily elected to enter into a car loan so if you don’t pay you should have repercussions.

If you hadn’t got sick you wouldn’t have went to the hospital and racked up all those bill so the government makes provisions for that,
But you must know the system

It's a little known fact that if you make even small but consistent payments to your bill that they cannot notify a collection agency and it will never hit your credit report.—but you must set this up before it goes to collections.

My ex g.f had over 20,000 in bills that never hit her credit report because she made small and consistent payments every month as she agreed to.

I have done the same thing… I have big bills and make small $30 a month payments on and they are not on my credit report.

That’s the technique..... you make minimum payments every month but the trick is that you must do this before it goes to collections… if it's already gone to collections its too late for this option

Since you already in collection, the best thing is to negotiate with them.. tell them that you will make small and consistent payments with them if they agree report that information to the credit bureaus.

Mark

Answer 2

It is true! Mortgage lenders ignore them for the most part!

For the best interest rate loans, you are usually required to pay off your collections before you can get the loan. Medical debts are not included in these calculations. Some lenders have maximums where you can't have so much medical debt.

The point where they become a thorn in your side is when they negatively affect your credit score.

Check the date that the collections are reporting on the credit report. If they report every month they could hurt you a lot. If they reported a while ago and have shown no effort to collect then your score will only get better and better regardless of whether you pay it off or not. In fact paying it off will hurt your score!

If you'd like to learn more about the mortgage process, check out my blog: http://explaintome.blogspot.com

Answer 3

There are some mortgage loans that are forgiving for "some" medical bills. But very few. Medical bills affect your credit just like any other unpaid debt. They will lower your score and make it nearly impossible to buy a car, get a credit card, get an apartment and much more. You are better off trying to settle with the collection agencies that are on your credit report. For a full, legally free copy of your credit report, go to www.annualcreditreport.com This is the only government ran website that will give you a copy of your credit from all three agencies. Pull them all, figure out who you owe money to, and make a plan to get rid of them.

Answer 4

Unpaid hospital bills are treated the same as any other debt. Since most hospitals don't have a dedicated collection department, the debt is usually sold to an outside collection agency. Depending on how old the debt is, it can actually be sold again to a collection agency that specializes in the collection of debts more than a year or two old. The outstanding debt on your credit report is viewed as any other unpaid and outstanding debt. How you wish to handle this may depend on the amount owed and the length of time it's been on your credit record. What state you live in will determine how long the negative credit stays on your report.

Answer 5

My experience was similar in which I was put into collection after not paying hosp. bills. I was only 16 at the time and now 11 years later it does not affect me. I believe it stays on you're record for 3 or 7 years. It all varies. check with all three credit bureaus to make sure it doesn't affect you in the future. Collection companies are more tolerant than creditors so work with them to find closure some way as I did. Look at it this way, if you were taken care of, and if you're in a better position now financially, repay what you can and talk to the collection companies about what you can afford monthly. I'm sure they would be willing to take some payment over none at all. good luck

Answer 6

They will find you eventually and you will have to pay, so get them paid. Also, the more debts you pay off, the better your credit score gets. Creditors look at your credit score and your medical bills factor into that. Your credit score is what determines which interest rates you are eligible for, so I'd say it makes a difference.

When you owe money, people don't like to give you more.

Answer 7

If you owe the money then pay it. Medical often doesn't report to credit scores. Your has and will have a negative effect.

How old are these? If there 6 months old they may be ready to settle for 60-80 cents on the dollar.

Answer 8

Its true ,Just purchased my home and lenders understand medical bills much more ,then anything else.
So feel assure ,and go with confidence ,you may have to explain why,but it will not be the reason for you not to get the loan .
Hope you get it .
Good luck .
P.S. Try to clean everything else ,if you can .

Answer 9

no rely if it is grew to become over to a creditor, then confident. they might desire to call the well being center and take a examine out to establish a fee plan. they gets letters many times soliciting for the money, then they gets warnings that it is going to likely be quickly grew to become over to a creditor. it is going to plenty much less complicated for them in the event that they simply call now and take a examine out to make preparations. have faith me, hospitals understand that human beings are having a stressful time making money top now and are frequently better than prepared to paintings something out.

Answer 10

send every month $10 die leave you alone