How Do Unpaid Medical Bills Affect My Credit Report?2
Unpaid medical bills can unfortunately quickly and easily handed over to a medical collections. Any type of debt collection is an account that has been passed along to a third-party debt collector. This happens generally after several payments have gone unpaid. Medical bill collections stand apart from other debt collections, however, due to the fact in most cases the insurance company is faulting on the payment, not the individual. If there are disputed charges that the insurance company will not cover, the charges if not quickly handled, will most likely become the individual’s personal debt.
While we are fully aware that if we do not pay our credit card bill we will negatively affect our credit score On the other hand, with medical collections our credit score can affected due to merely inefficient communication between physicians and insurance companies.
What happens is that your creditors report monthly on your payment status to your credit report. The medical debt collectors and creditors are not obligated to notify you that will come to collect the debt.
Any type of debt collection is considered one of the worst types of credit report accounts and you will credit score will drop in the case that you have been delinquent with an account. As your result you may be denied credit cards and loans in the near future.
By paying off your collection debt you can slightly improve your credit store. Over time, the effects on this unpaid bill on your credit report will slowly lessen, even more so if you have paid off your debt. In fact, medical debt collection accounts can remain on your credit report for up to seven years, so it is in your best interest to do everything possible to pay off the debt as soon as possible. Not everyone has the money to do this and paying the debt with your credit card is not the answer either, as it will further damage your credit score.