Medical bills can have a huge impact on your credit score, especially if you have been unable to repay them promptly. Here, we will take a look at how to handle medical bills and reduce the negative effect they have on your credit score.
Credit reporting agencies each have different methods of recording medical bills in a credit report. Experian doesn’t take note of debts until they are 180 days overdue, giving debtors several months to repay without impacting upon their credit scores. In some cases, medical bills will be removed from your credit report after they have been paid back in full, meaning they won’t affect your credit in any way in the future. Some credit reporters penalize medical expenses less heaviliy than other forms of debt.
However, other reporters may treat medical expenses just like any other bill, and they can remain on your credit report for seven years after the original failure to pay. This means you should try and take care not to fall behind – which can be difficult when the medical bills you are facing are huge. You could try and contact the hospital and arrange a repayment plan, to help you pay back what you can afford, rather than facing one lump sum.
The next thing we would recommend is to take out the best health insurance policy you can afford. This means the risk of being faced with huge medical bills is minimized. Even if you do have insurance, you should always check what is owed just in case the insurance doesn’t cover the total amount. If you do receive a medical bill, it is important to thoroughly check what you are being charged for. Ensure the bill is itemized so you can see exactly what is on it, and be sure you aren’t being charged for services or treatment you didn’t receive.
If medical bills are becoming difficult to repay, it could be worth borrowing money online. http://smartcredit.fi is a great website to compare different online lenders, to find a deal which is tailored to your needs. You can choose the amount you wish to borrow, and how long for, to find deals which are exactly what you need. These tend to be available to those with poor credit history too, making them ideal for when you have already fallen behind on medical bill payments and they are starting to affect your credit rating.