Medical Debt Impacts on Your Credit Score
If You think that medical bills can get worse, you are right at a part. Unpaid bills can cause huge medical debt impacts on your credit score. Generally, this case occurs with the doctors and hospitals as they do not report to the credit agencies.
They just turn their debts to the lenders and the collection agencies has to report them. It is not surprising if we say that the debt collection untimely can cause your credit to effect a lot. Just a single unpaid collection can make your credit score by up to 50-80 points.
This credit score will not hit the credit record harder for a longer time, until and unless there is some negative information. You must continuously work on improving your credit score. The collection accounts which includes medical debts will remain on your credit report for up to seven years. This waiting period is applied to both paid and unpaid accounts. This article will show some figures about how medical debt impacts your credit score.
Will a Medical Debt in Collections Really Hurt My Scores?
Your Different medical scores get affected in different manners.
It is very common to have errors in the collection of medical bills. In many cases, it’s due to a delay in payment by the insurance company. Sometimes it’s because of an unpaid co-payment. If you have some medical pendings and you think that they are wrong, there are certain methods to remove them. Those methods are as follows.
- First look at the date of the medical bill. If it is not more then 180 days, You still have a chance to discuss the issue of why it is showing as unpaid.
- If your medical bill is already paid by your insurance provider and still it is shown pending, you can follow-up an argument with the credit bureaus that are reporting the error. They should remove it pending an investigation into the matter. You will need to provide documentation that proves the bill was paid.
- If the collection is enforced on you, immediately contact the agency and ask for the removal of that item once the bill is paid. Collection agencies are not required to remove the item from your report, but some will work with you.
- If an unpaid medical bill has gone to collections, try contacting your medical provider. You might still be able to arrange payments with them and have them pull the bill back from collections.
- Always follow up with your health insurance company after a doctor or hospital visit to verify what is covered and what you owe.
- explanation of benefits are statements given by health insurance companies and treatments settle on their behalf. It also contains any pendings payable by you. Take full time to read this carefully and contact your insurance provider if any bill is still pending.
- Try to get the itemized bill for any medication taken. An itemized bill will give detailed information about the spendings occurred.