Affect of Unpaid Medical Bills on Credit Score

Unpaid hospital or medical bills can affect your credit score just like any other unpaid debt.  If you did not have health insurance to cover your medical bills and have been unable to pay them they may be passed on to a collection agency.  Collection agencies report the details of collection of accounts to credit bureaus just like a mortgage lender or a credit card company might do..  Whenever a lender views a copy of your credit report he will see the amount of money you owe for a medical bill reported by collection agency as ‘medical collection’.

Medical bills are reported to credit bureaus because they are like any other debt that might affect your ability to pay back the money you have taken from other lender and creditors.  The name of the medical facility of the doctor who has raised the bill is usually hidden from the businesses that view your credit report.  This is done to maintain your privacy and to prevent the nature of your illness for which you are treated to affect our business decision such as a loan or getting hired for a new job.  The details of the source of the collection account is included in your own personal copy of the credit report.  You will have the necessary details and contact information present on your personal copy so that you can contact the collection agency or the source of the unpaid medical bill if necessary.  Since an unpaid medical bill is treated like any other debt the impact on your credit score will be serious and will interfere with your ability to procure new credit in the future.