How do medical bills affect my credit score?

@garret_hahn 

Medical bills can affect your credit score in several ways:

1. Late or missed payments: If you fail to pay your medical bills on time, it can result in late payments, which can have a negative impact on your credit score. Payment history is a significant factor in determining credit scores.
2. Collection accounts: If you don't pay your medical bills and they remain unpaid for an extended period, the healthcare provider may send the debt to a collection agency. The collection agency can report the debt to credit bureaus, which can significantly lower your credit score.
3. Credit utilization ratio: Medical bills can also affect your credit utilization ratio, which is the percentage of available credit you are using. If you need to use credit cards or loans to pay for medical expenses, it can increase your credit utilization ratio and potentially lower your credit score.
4. Credit inquiries: When you apply for medical financing options or payment plans, it may require a credit check, resulting in a hard inquiry on your credit report. Multiple hard inquiries within a short period can lower your credit score temporarily.
5. Unpaid medical liens: In some cases, medical providers can file a lien against your property as a means of securing payment for outstanding medical bills. Unpaid medical liens can negatively affect your credit score and make it difficult for you to obtain future credit.

It's important to note that the credit reporting system is constantly changing, and laws regarding medical debt and credit reporting can vary by country and state.

@garret_hahn 

Medical bills can potentially impact your credit score, but the impact may vary depending on various factors. Here are a few considerations regarding how medical bills can affect your credit score:

1. Payment history: If you fail to pay your medical bills on time, it can negatively affect your credit score. Late payments can be reported to credit bureaus, which could lower your credit score.
2. Debt collection: In some cases, medical providers may send unpaid bills to collections agencies. If a collection agency reports this to the credit bureaus, it can significantly damage your credit score.
3. Credit utilization: If you have medical bills that remain outstanding, they can add to your credit utilization ratio. Your credit utilization ratio is the amount of credit you are using compared to your credit limit. Higher utilization can lower your credit score.
4. Credit applications: When applying for credit, some lenders and creditors may review your medical bills and outstanding medical debt as a part of their decision-making process. This could impact their decision to approve or deny your application and potentially impact your credit score.
5. New credit: If you have balances or unpaid bills from medical providers, it may affect your ability to obtain new credit, like loans or credit cards. Unresolved medical debt can be seen as a liability by potential lenders.

It is important to note that the impact of medical bills on your credit score may vary depending on the scoring model used by the credit bureau and other individual factors. Additionally, recent updates to credit reporting guidelines may minimize the impact of medical debt on credit scores to some extent.