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How unpaid medical bills may affect credit in Ohio

In the United States, nearly half of all accounts in collection are related to medical debt. Roughly 40 percent of all Americans say that their credit score is lower than it otherwise would be due to medical debt. Although steps are being taken to minimize the impact that medical debt has on an individual's credit score, some say that it shouldn't be taken into account at all.

When an account goes into collections, it could lower an individual's FICO score by up to 100 points. This is true whether the account is related to medical debt or any other type of debt. Once an account goes into collections, lenders will see it on the credit report for seven years. Although the impact of an account going into collections lessens over time, it can still be problematic.

Those who say that medical bills should not be counted toward a person's credit score say that medical bills are unlike other debts. They claim that medical bills that go to collections are often bills that are being disputed. Unpaid bills that go to collection could also be the result of a medical billing error. Either way, consumer advocates believe that these debts do not predict whether or not an individual would be able to make future loan payments.

Those who may be struggling to pay medical expenses or other types of debt may wish to consider bankruptcy. Bankruptcy may enable an individual to obtain a stay against creditor actions such as foreclosure or a lawsuit. A bankruptcy attorney may be able to help a debtor go through the process of reorganizing debt or liquidating assets in an effort to achieve debt relief. This may make it possible for an individual to get a fresh financial start.

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