Do Medical Bills Affect Your Credit when Buying a House? Have you ever tried to buy a house, but the bank denied your loan application because of unpaid medical bills?
You may be surprised to find that medical bills can affect your credit. Many people are unaware that medical bills can affect credit.
So in this article, we will discuss do medical bills affect your credit & also how Medical Bills Affect Your Credit when Buying a House. Check the complete process.
Contents In Article
Do Medical Bills Affect Your Credit When Buying a House?
Most people do not realize that the debts they incur from receiving health care services can damage their credit reports and scores, which can in turn prevent them from buying a house.
Do Medical Bills Affect Your Credit when Buying a House? Well, it is a possibility. Banks use the credit score of a borrower in order to approve his loan application. If your credit score is below a certain level then most banks will deny your loan application.
One of the most significant reasons that can lower down your credit score is unpaid medical bills.
Your credit can be damaged by unpaid medical bills that are sent to collection agencies or reported to the credit bureaus as “unpaid” or “late”.
This is because medical bills are not like other expenses. Your credit card payments, utility bills, and mortgage payments do not include charges for services you might never receive like MRIs, surgery, or consultations with specialists.
Therefore your payment history on various debts will play a vital role in determining the trustworthiness of an individual so as to give a loan.
So if there are unpaid medical bills, it is a high possibility that they will remain unpaid and you might end up with bad credit history. So, do medical bills affect your credit when buying a house? The answer is yes.
Types of Unpaid Medical Debts
There are two different types of unpaid medical debt that can affect your credit score:
- Medical bills that are sent to collection agencies or reported to the credit bureaus as “unpaid” or “late.”
- The unpaid medical bills which are sent to collections will stay on your credit report for 7 years, while unpaid medical bills which are not sent to collection agencies might affect your credit score for 2 years.
Medical Bills Affect Credit Score
The unpaid medical bills that are sent to collection agencies will stay on the credit report of the individual for 7 years.
If there are medical debts that were not sent to collections and remain unpaid, they might affect your credit score for 2 years.
Therefore you should make sure to pay all your medical bills on time. Sometimes, it is better to make a partial payment for your medical bills and pay the outstanding balance at a later date.
Conclusion
We hope you got the complete information on “Do Medical Bills Affect Your Credit when Buying a House?” If you have unpaid medical bills, then they will affect your credit score. Make sure to clear them as soon as possible. Stay tuned to Peryourhealth.fun for more information.