Medical Bills and Your Credit Score

MEDICAL BILLS AND YOUR CREDIT SCORE

There have new changes in reporting medical debts. These changes affect your credit score.

  1. Generally, medical debts are not listed on credit reports.
  2. Generally, medical debts will not affect your credit score. By eliminating medical debts, your score will increase about 20 points.
  3. Medical debt stays on your credit report for seven years. Now paid medical debt will be removed from credit reports.
  4. Medical bills under $500 will not be listed on credit reports.

AS WITH MOST THINGS, THERE ARE “IFS and BUTS.

  • Some medical bills will show up.
  • Even if not reported, you still owe the medical bills.
  • Unpaid medical bills wind up with Collection Agencies.
  • Collection Agencies can and will report the debt to credit bureaus.
  • When a Collection Agency reports unpaid medical bills, your credit score takes a hit.
  • How much of a hit? Between 45 to 125 points. (Ouch!)
  • What if you are considering filing for Bankruptcy? You must keep track of your medical bills.

OTHER DEBTS THAT MAY NOT SHOW UP

  • Parking tickets
  • Illinois tollway debts
  • IRS debts
  • Back child support
  • Pending lawsuits
  • Utility bills

Some debts never find their way to credit reports.

 DisclaimerBlogs on legal matters are for information purposes only and are not to be construed as legal advice.

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