Could Medical Debt Impact Your Credit Score?

Many people are unaware that their credit score can be impacted by medical debt. Medical debt can result from unpaid medical bills, such as those for doctor’s visits, hospital stays, or prescription drugs.

Typically, unpaid bills are first reported to one of the three main credit bureaus: Equifax, Experian, or TransUnion. The credit bureaus collect information from different sources, including lenders, utility companies, and creditors, and use this information to create your credit report.

In most cases, medical debt will only be included on your credit report if it has been sent to collections. This usually occurs when the original creditor has been unable to collect the debt after several attempts. Once a debt is sent to collections, the collection agency will report it to the credit bureaus.

However, there are some exceptions to this rule. For example, some medical providers may report unpaid bills to the credit bureaus even if they have not been sent to collections. Additionally, if you have a government-backed loan, such as a student loan or mortgage, the lender may report your missed payments to the credit bureaus. You should also know that unpaid medical debt can stay on your credit report for up to seven years, which can have a negative impact on your credit score.

If you have medical debt, there are steps you can take to protect your credit score. First, try to negotiate with your creditors to reduce the amount of debt you owe. You may also be able to set up a payment plan that allows you to pay off your debt over time.

If you are unable to negotiate with your creditors, you may want to consider contacting a credit counseling agency. Credit counseling agencies can help you develop a budget and manage your debt. They can also help you negotiate with your creditors and get your medical debt removed from your credit report.

The best way to protect your credit score from medical debt is to avoid it in the first place. Here are a few tips:

Have health insurance. Health insurance can help you pay for the cost of medical care, which can help prevent you from getting into debt.
Create a budget and stick to it. This will help you keep track of your expenses and make sure you are able to pay your bills on time.
Talk to your doctor about the cost of care. Before you undergo any medical procedures, talk to your doctor about the cost. This will help you make informed decisions about your care and avoid unexpected bills.
Seek financial assistance. If you are struggling to pay for medical care, there are programs that can help. You may be eligible for government assistance, such as Medicaid or Medicare. You can also contact your local community health center to see if you qualify for free or low-cost care.

If you have a dental bill, there are plenty of resources available to help you pay for the cost of care. You can contact your local dental school or community health center to see if you qualify for free or low-cost care. You can also contact your state’s Medicaid office to see if you qualify for coverage.