Understanding the Impact of Unpaid Medical Bills on Your Credit Report
After a serious medical crisis, unpaid medical bills may create chaos in your financial life. Unpaid medical bills have a direct effect on your credit score. As per the Federal Reserve, one out of six credit reports contains a component of medical debt collection, and 1 out of 2 Americans have experienced low credit score exclusively due to unpaid medical debts. If you have any unpaid medical debts, it pays to understand the consequences of a continued failure to pay. In this article, we discuss the impact that an unpaid medical debt has on your credit report.
Damage Your Credit Score
Unpaid bills and debts adversely impact your credit score, and so do any unpaid medical bills. According to credit repair specialists, unpaid medical bills can affect your credit score in the following ways:
- Lower your credit score by up to 100 points.
- Footprints of unpaid medical bills on credit report last 7 years
The only unpaid medical debts that are exempt from such considerations according the latest version of FICO credit score are those amounting to $100. This is no consolation for many people as unpaid medical bills are usually far-greater than $100. If unpaid medical bills have impacted your credit report negatively, there are avenues that you could pursue to address the issue.
What are the Remedies?
Any measures to remedy the impact of unpaid medical bills on your credit report require seriousness, a constant effort, and patience. If you are not sure about your ability to see this through, always consult a credit repair agency.
If you feel that unpaid medical bills are erroneously reflected on your credit report, you can raise the issue with all the three credit rating bureaus: Equifax, Experian and the TransUnion. To dispute the errors related to unpaid medical bills, you need to follow these steps:
- Collect all Medical Bills and Related Documents.
- Send Written Notices to Credit Bureaus.
- Keep Communicating with Credit Bureaus.
The Way Forward
Unpaid medical debts have a negative impact on your credit score. As stated above, one out of every two people fall victim to lowered credit score due to unpaid medical bills, therefore, you need to take steps to curb the negative consequences of unpaid bills on your credit report in time to avoid numerous inconveniences on the financial front.
To tackle the issue of unpaid medical bills from your credit report, contact us now and speak to the experts. Our team of credit repair specialists are always at your service.