MEDICAL BILLS AND YOUR CREDIT SCORE
There have new changes in reporting medical debts. These changes affect your credit score.
- Generally, medical debts are not listed on credit reports.
- Generally, medical debts will not affect your credit score. By eliminating medical debts, your score will increase about 20 points.
- Medical debt stays on your credit report for seven years. Now paid medical debt will be removed from credit reports.
- 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.
Disclaimer: Blogs on legal matters are for information purposes only and are not to be construed as legal advice.