Can unpaid medical bills really go against your credit?

8 Comments

1. Toni says:

   November 13, 2011 at 10:19 am

   The Fico Scoring System is a big mystery.
   But from reading, it looks like unpaid medical bills do not harm your score as much as an unpaid credit card or loan.
   Perhaps this is to give people a “break”.
   Medical bills happen, most people have no control over them.
   But with credit cards, it’s your own fault that you ran them up high and then didn’t pay.

   Yes, they do send you to a collection agency which will report to your credit reports.
   She needs to call up the hospital and ask if they will put her in a 1 year payment plan (perhaps 2 years if bill is large).
   This will be considered an effort to pay and will keep it out of collections…
2. Iffy says:

   November 13, 2011 at 10:57 am

   Of course they do. Who told you that is dumb. Unpaid bills are destructive to credit.
   Your friend will have their bank account frozen and pay garnisheed
3. R T says:

   November 13, 2011 at 11:50 am

   I think you mean it they will send it to “collections”. A collection agency is someone who will collect the debt for a portion of what is owed. In some cases they will buy the debt (pay the bill and then collect from you).

   Yes, a collection agency can and will report this to the credit bureaus and it will affect his credit score. Yes, they can and do charge interest.
4. Caveat Emptor says:

   November 13, 2011 at 12:23 pm

   You’ve been told wrong. Of course they can “go against your credit.”
5. bdancer222 says:

   November 13, 2011 at 12:35 pm

   Medical bills are just like any other defaulted debt. They can be turned to collection agencies who will report them to the credit bureaus. It will negatively impact your credit/score just like any other defaulted debt.

   It is true that some creditors will look at medical debt differently but it still is included in you credit report and score.
6. the kid says:

   November 13, 2011 at 12:51 pm

   Yes, they can and do. ANY time you owe money, it can affect your credit.
7. StephenWeinstein says:

   November 13, 2011 at 1:44 pm

   What you were always told is wrong. Unpaid medical bills can and do go against your credit.
8. richard t says:

   November 13, 2011 at 1:50 pm

   Yes, most hospitals and Dr’s agencies turn things over to collections. If it is a large amount (something in the neighborhood of 2,000) they may take the person to court and obtain a judgement. If it is a small amount you will just get some harassing calls for a few months and it will negatively impact your credit score. If they amount is something your friend can handle over time, he can call the medical provider and perhaps work out some kind of payment plan before it hits collection or they obtain a judgement. If they can not make payments, it probably is just better to not pay anything and in a couple of years it will begin to impact their credit less and less.