`Imagine you are in a situation where you have an emergency. You head to the hospital, get treated well, and now you’re fully fine and healthy. After a few days, you receive your medical bill and are surprised to see the amount because you cannot pay such a big bill.

You keep on delaying it, delaying it. Now the question comes to mind. Can this unpaid medical bill affect your credit score? Many people don’t know the answer and then have to face serious consequences when they try to get a loan and get rejected.
This blog is all about your medical bills and credit scores; you’ll learn:

• What medical debt is
• Whether or not it affects your credit card
• And how you can protect your credit scores from the medical bills
• How Koohi Goth Hospital is protecting and guiding people who are in debt

What is medical debt?

Medical debt means that you owe a debt for your medical treatment, like surgery bills, check-ups, medicines hospital bills. You are not able to pay because of multiple reasons, depending on your financial conditions.

Not having health insurance.

Insurance doesn’t cover it.

You are not able to pay the full bill at once.

Sometimes, even small treatments or emergency room visits can outcome in bills that seem impossible to control.

This becomes more difficult when you are already dealing with other loans or monthly expenses.

People often take no notice of these bills, thinking they will settle later, but that wait can cause bigger financial inconvenience.

Does Medical debt affect your credit score?

Yes, medical debt can affect your credit score. But not immediately. Here are the key points on how this whole process is done and how it affects your credit score

Key points to consider:

➤ Sending it to a debt collector:
If you don’t pay your medical debt on time, then the medical debt over to a debt collector by the hospital.
Most hospitals wait for some time before taking this step, usually giving you a chance to settle in.

But if they don’t hear back from you or see any payment, they send it to a collection agency.

➤ Credit bureaus:
From there, the debt collector sends the reports to the credit bureaus.

Credit bureaus like Experian, Equifax, and TransUnion maintain your credit history. Once the medical debt reaches them, it gets added to your credit report as an unpaid bill.

As soon as this process happens, your credit score comes down spontaneously.

This drop in your credit score can affect your ability to get approved for loans, credit cards, or even rental homes.

Even if the amount is not too big, it harms the lenders.

That’s why it is very important to take medical bills seriously and act quickly.

How to Protect Your Credit Score from Medical Bills?

To protect yourself from the medical bills, start focusing on these things.

➤ Always check your medical bills for errors:
When you receive your medical bill not only fold the bill and keep it in your drawer; instead, go through every detail in that bill.

Sometimes hospitals charge you for the treatments or services you never received from them. There could be a duplicate charge or even the wrong medicine, and the number of days must also be wrong for how much you stayed there. Hence, there could be an extra bill.

These errors would make you end up paying for those things you didn’t even own.

If something looks strange and you are confused about what to do, go and ask the hospital billing system.

➤ Contact the hospital to ask for a payment plan:
If you receive a huge bill from the hospital and are not able to pay it due to your financial conditions, don’t panic.

Ask the hospital’s billing system to give you a plan to pay the bill in installments. This could save your credit score from falling.

Moreover, hospitals do understand that not everyone can pay a big payment upfront, so they can even waive your interest if asked at the time.

What if medical debt is already on your credit card report?

If medical debt is already on your credit report, then. First, check for any errors and dispute them with proof.

If the debt is correct, ask the collection agency for a “pay-for-delete” deal. If that’s not possible, pay the debt and request an update.

Paid debt looks better on your report than unpaid debt. Also, keep track, medical debt usually stays for 7 years, but it may be removed earlier if paid or disputed.

How Koohi Goth Hospital Helps

If you are experiencing financial difficulties or medical bills, you can contact Koohi Goth Hospital. Although they don’t provide loan or debt relief services, they do offer free medical care, particularly to poor women in Pakistan. Koohi Goth Hospital helps those who cannot afford costly healthcare by providing free surgeries, drugs, and specialized care. For many families who are already struggling financially, this kind of assistance is a lifesaver.

Here’s the link to the site:
Koohi Goth Hospital

Conclusion

Medical bills can come out of nowhere and slam you. Especially when you’re already dealing with other expenses. Whether it’s a small bill or a big one, it can affect your credit score if not handled properly. So always check your bills, talk to the hospital, and take action before it becomes a serious issue.

And if you’re still feeling confused or stuck, don’t hesitate to reach out to Koohi Goth Hospital. There’s always a way out if you take the right steps at the right time.

FAQs

1. How long does medical debt stay on your credit report?
Medical debt can stay on your credit report for up to 7 years.

2. Will paying medical debt improve my credit score?
Yes, paying your medical debt can improve your credit score over time. When it is mentioned as paid or removed on your report.

3. Can I go to jail for not paying medical bills?
No, you won’t be imprisoned for unpaid medical bills. But it could lead to court judgments.