Do hosptital bills count against your credit score?

Question

I'm wondering if hospital bills that have gone to collections impact your credit score. If so how much? I was once told by a friend that when applying for a mortgage or other loan they do not take these into consideration.

Answer 1

yeah unfortunately they do, I had this happen to me and i was in contact w/ the hospital, lots of correspondence to try and qualify for financial assistance and was working on reapplying and they sent it to collections, so now it will be on there for 7 years. I did pay it off, within a couple of months of it going to collections, but it does appear as a negative and can impact your score. Hopefully in your case if the rest of your credit history is good and current and you pay your bills on time (i do all of that) then the lender may decide that med. bill moved to collection wont affect your rate.

Answer 2

Medical bills do impact your score - especially ones that have been turned over to collections.
I do know that some mortgage lenders will overlook a certain dollar amount of medical collections (like 2K-5K) just because many times they are errors. (Don't you just love insurance companies??!!).
Of course, you would need some sort of documentation for the lender that the matter is being investigated. The lender might also make a contingency on the loan stating that the medical collections must be paid within two years of closing. I hope that helps!

Answer 3

Collection items are a major derogatory item and do hurt your credit score. Your friend is incorrect. Mortgage companies often do not require you to pay off small collections items but if the amount were large enough they very well could require that you pay them.

Answer 4

Yes, they do. My credit score was lowered nearly 30 points when I didn't pay 2 medical bills. However, I have paid one and it increased my score. They are both still on my report though. If you have unpaid bills, call up the collection agency and make a plan. They HAVE TO ACCEPT whatever you can afford to pay monthly. For example if you say I can only afford $10 a month, they will except that and as long as you pay every month... THEY CAN NOT PUT IT ON YOUR REPORT!!!

Answer 5

Interesting that medical bills will affect ur credit rating but hospitals write them off.

Answer 6

They hurt your credit score, but many lenders do not take them into consideration. However, it is ALWAYS better to clear them up as quickly as possible.