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Do Medical Bills Affect Credit? Here’s Everything You Need to Know…



There about 6,000 hospitals across the United States that serve millions of people every year. Many of those people will receive treatment for whatever serious illnesses they have and later find they can’t pay their medical bills.

What happens when people go delinquent on their medical expenses? Do medical bills affect credit? Are there effective ways people can be proactive when managing medical debt?

All of those questions and more are answered in the post below. If you’re curious to learn more about how to navigate the ever-rising costs of medical care, keep reading to become a more informed consumer!

Do Medical Bills Affect Credit?

We’ve heard several people debate our post’s key question, “Do medical bills affect credit?” The answer to that question is yes and no.

People that go to the doctor’s office or hospital receive medical bills for services rendered. The simple act of receiving that bill does not adversely affect your credit.

Only if you exceed your bill’s time frame without payment (usually by a wide margin) will your medical office get tired of harassing you and send your bill to collections. That’s when you’ll get a bad mark on your credit.

What Is Collections?

Collections is a short-hand term for “collections agency.” Collections agencies are private businesses that buy debt off of companies and people at a reduced rate and then work to recollect a portion of that debt from delinquent parties so they can turn a profit.

For example, if you owe your doctor’s office $1000 and don’t pay it, your doctor may cut their losses and sell your debt to an agency for $200. The agency would then chase you down for the $1000 but will settle for anything above $200.

When Do Bills Go to Collections?

This depends on your doctor’s invoice terms and patience. Typically, medical offices will give patients anywhere from 30 to 90 days to make good on their bills.

Medical offices may choose to pursue payment long after 90 days to not have to sell your debt at a discount to an agency. Others may immediately sell your debt after your allotted time frame has lapsed.

How Long Will Bad Bills Stay on Your Record?

A medical bill that ends up with collections and shows up as a dark mark on your credit report won’t subside if/when you pay a collections agency.

Bad marks on your credit can sit on your report for over a half-decade. What’s worse is that bad marks on your credit pertaining to missed payments have the largest impact on your overall credit score.

Ways to Avoid Medical Bills Going Bad

Medical billing headaches stemming from delinquent payments can be avoided with some work. Here are a few tips on how you may be able to avoid and manage bill delinquency.

Start Investing in an HSA

If you’re employed full-time, your employer may give you access to an HSA account. An HSA is a tax-exempt Health Savings Account that you can shelter money in and withdraw from for free in order to pay for health expenses.

By putting money in your HSA, you’ll build an emergency fund that you can call upon if you come up against a difficult medical bill. You’ll also lower your taxable income by placing money there which may save you thousands if you end up falling into a lower tax bracket.

Opt for Affordable Treatment

Shopping around when receiving medical treatment isn’t always an option. When it is though, take the time to see who’s offering what prices and go with a medical provider that has rates you can manage.

While there are sometimes viable options to get a loan or obtain special financing for certain procedures, your goal should be to find rates that are feasible for you to pay for without incurring debt.

Get Quality Medical Insurance

People that are in low-income brackets in America almost certainly qualify for free healthcare through their state or the federal Medicare/Medicaid program. Enter your information on and the portal will let you know what sort of help you can get and how to obtain it.

If you’re worried that you make too much money to qualify for free medical insurance, help may still be available. The federal government helps middle-class families with “premium tax credits” that offset the cost of health care, in-part. These tax credits can be claimed in April when you file taxes or can be pre-paid to your account each month when you pay your premium.

Armed with good health insurance, you’ll be able to side-step steep medical expenses in the future.

Negotiate Your Bills

Many people don’t know this but private practice medical institutions sometimes have wiggle room in the rates they charge. Don’t be afraid to ask for a discount on certain services to see if the doctor you’re working with will help you out.

A quick question could save you hundreds on treatments.

Work Out a Payment Plan With Your Doctor

Most doctors don’t want to sell your bill to collections since they’ll only receive a portion of what you owe them. A doctor will be much more open to working out a payment plan with you.

If you feel you’re not going to be able to manage your bills, ask your doctor if you can pay them back monthly. In that scenario, they get paid and you get to avoid a bad mark on your credit.

Your Credit Is Worth Protecting

Don’t be the person that throws your hands up, lets bills go to collections, and allows your credit to take a hit. Believe us when we say that bad credit is expensive and can limit your opportunities in life.

Your credit is worth protecting!

Use our guide to be an informed consumer and if you have more questions like “do medical bills affect credit?”, please explore additional information on our blog.

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ASK THE MONEY LADY: What you need to know about protecting your credit score | Regional-Lifestyles | Lifestyles



Dear Greg,

Most people never want to share their social insurance number for fear of a hit to their credit bureau, but unfortunately, you may find it a necessity when asked by your lender, who now needs to ensure identity due to increased consumer fraud.

If you apply for credit at a bank, open a bank account or finance a vehicle, chances are you will need to disclose your social insurance number (SIN).

Many people still believe that they should never agree to an inquiry or give out their SIN number too many times to obtain credit. They think their credit will either become damaged or their credit bureau rating and score will go down. This is sometimes not true – so to help you out, Greg, I’m going to dispel all the myths and also let you know what the banks are looking for.

There are two major credit bureau companies that all financial institutions and merchants use today. They are Equifax and TransCanada Union – agencies that rank and provide an overall score to each person who uses credit.

The system for measuring hits to your credit score is indeed intuitive, meaning it measures and evaluates the type of merchant and inquiry. So, it knows if you are shopping around. If you have several inquiries from different banks because you are rate shopping for a mortgage, you will usually not see any decline in your score, (however, these inquiries must be contained within a 30-day period).

It’s the same thing when you are shopping for a vehicle – multiple hits to your credit bureau from car dealers will not alter the score if contained within 30 days.

But, on the other hand, if you are truly shopping and going to different stores, applying for multiple credit cards, personal and retail loans, or buying items on deferred payment plans, then yes, this will drop your score regardless of the 30-day limit.

Protect your credit

First and foremost, you want to protect your credit. This is the foundation of all lending and is the only way for lenders to judge your creditworthiness for the future. If you always pay your bills on time and have never declared bankruptcy, chances are you will have good credit.

But if you are the opposite, and your credit score is too low, you may find it very difficult to get future credit. Your credit bureau score can range from 300 to 900.

As a general guideline, banks and A-Lenders are looking for clients with scores above 680 and will generally automatically decline applications with scores under 600. Credit card companies are a little more lenient and will go down as low as 530, with auto declines for scores under 500.

Here are some tips to improve your credit and maintain a good rating:

1. Pay your bills two to three days before they are due. Paying them on the due date (especially through online banking) will make you one to two days late. This is recorded on your credit bureau and will definitely lower your score without you knowing it.

2. Do not carry balances on credit cards or personal loans month over month. This means your credit is revolving and will automatically drop your score.

3. Resist the urge to have a lot of open credit cards, even if they have zero balances.

4. You must have some credit. If you had previous bad credit and now are just using cash, you are essentially handcuffing your future. Without re-establishing good credit, the banks will decline you every time.

5. Property taxes and support payments in arrears can also drop your score once they are reported.

6. Mortgage and vehicle payments in arrears once reported (which usually happens after 60 days), are a major hit to your score. Please try to avoid this.

I have heard in the past that some merchants or banks do soft hits to your credit. Please do not get fooled by this. There is no such thing as a “soft hit” or a “hard hit” to your credit bureau. If they have your verbal consent, (even if they don’t have your SIN number) when they adjudicate a consumer credit request, they will hit your credit and it will adjust your score.

Good luck and best wishes,

Christine Ibbotson

Written by Christine Ibbotson, author of four finance books, including the Canadian best-selling book, “How to Retire Debt-Free & Wealthy.” Go to or send a question to i[email protected]


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Bad Credit Credit Cards – Bad Credit Credit Cards – ‘My refund has been sent to a credit card that I cancelled’ – your rights to lost money | Fintech Zoom | Fintech Zoom




Bad Credit Credit Cards – Bad Credit Credit Cards – ‘My refund has been sent to a credit card that I cancelled’ – your rights to lost money | Fintech Zoom

Bad Credit Credit Cards – ‘My refund has been sent to a credit card that I cancelled’ – your rights to lost money

Thanks to Covid, traders have been processing significant numbers of refunds due to events, such as holidays and weddings, being cancelled.

In many cases, these refunds have been sent back to the credit cards used to pay for the purchase – but this has caused a new problem to emerge in relation to card purchases.

When a trader provides a refund, it usually goes back via the same method as the original payment. So if you pay by credit card, the refund is sent back to that card.

However, many people have cancelled credit cards during the pandemic and have therefore found they cannot access the cash.

So what happens to your refund?

Will I get my money back?

If you’ve cancelled the card, the money will be sent to a holding account

The good news is that your refund is safe, as the money will simply be put into a holding ­account by the card provider.

The bad news is that it can take a long time to retrieve the money.

My advice, if you’re waiting for a refund for goods or services you paid for with a card you have now cancelled, tell the trader immediately and ask for the refund to be paid via an alternative method.

Get the latest money advice, news and help straight to your inbox – sign up at

Positive balance credit card accounts

When a refund is processed back to a card, it can create a positive balance on your account – usually when you have already paid the most recent card bill.

This potentially presents issues as credit cards are not designed to ‘hold’ money in the same way as a current or savings account.

For this reason, consumers are not encouraged to hold positive balances on a credit card.

If your card has a positive balance and you are likely to use it again soon, your next purchases will rectify the situation.

But if you are not planning to use your credit card again in the short-term, ask the card company to transfer the surplus to your ­current account. Do not withdraw the money via an ATM as this may attract fees.

Credit card cash withdrawals

Financial experts warn that you should not get money out from a credit card as it can have a major impact on your credit rating.

This is because there is a very high interest rate attached to withdrawals and companies will flag any withdrawals up, impacting a customer’s credit file.

Bad Credit Credit Cards – ‘My refund has been sent to a credit card that I cancelled’ – your rights to lost money

Bad Credit Credit Cards – Bad Credit Credit Cards – ‘My refund has been sent to a credit card that I cancelled’ – your rights to lost money | Fintech Zoom

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Workout My Credit Solutions Rises as an Authority in Credit Repair and Financial Education



Quality of life is impacted by numerous factors, and one of its most significant determinants is a person’s financial health. For the most part, financial stability involves the ability to provide for themselves or their family members without putting a significant dent in their wallets. As a concept, financial stability as well as financial freedom is easy to understand but achieving and maintaining it is a whole new story. Today, millions of individuals around the world are struggling with money issues, some of which are caused by the outbreak of COVID-19. However, there are those contending with bad credit, in particular, as a result of ill-informed decisions, mismanagement, and more. Widely acclaimed for the extent to which it helps clients get their credit into shape, Workout My Credit Solutions, LLC has emerged as a go-to venture that is currently making waves in the industry.

Also Read | Top 9 Upcoming Credit Repair Companies

This emerging powerhouse was launched by Nicole Fisher, a 25-year-old serial entrepreneur who has earned recognition for her all-out attitude toward lending people a hand through her initiatives. Highly cognizant of the impact of bad credit on one’s financial health, she started Workout My Credit Solutions in May 2020 and, since then, has been making it possible for clients to get approved for credit cards, mortgage loans, and auto loans, to name a few.

In just a year, the credit repair company has seen impressive growth, reaching remarkable heights due to its consistent delivery of top-notch services. Apart from restoring one’s credit into its former glory, Workout My Credit Solutions also delivers financial education because it believes in the importance of equipping clients with the knowledge they need to handle their money better. It acknowledges the existing gaps in the current educational system where ample attention is not given to arming people with the skills they need to secure a financially stable future. “Our goal is to help clients understand how credit works while they are in the process of getting it fixed,” shares Nicole Fisher.

Also Read | Top 9 Upcoming Credit Repair Companies

Additionally, Workout My Credit Solutions, under the leadership of Nicole Fisher, enables clients to get pre-approved mortgage loans after having their credit repaired by this five-star company. The additional service is strategically designed and incorporated into its inventory of offerings to translate into reality the dreams of those wishing to own a home.

On track to taking center stage, Workout My Credit Solutions has been on the receiving end of excellent reviews from everyone who has come under its wing. It takes pride in the long list of accomplishments it managed to snag under its belt shortly after its establishment and is set to reach the forefront of the industry in the coming years.

With its dedication to pushing people toward financial freedom, Workout My Credit Solutions is bound to remain an impressive force. As it carves a path toward the summit, it plans to continue serving as a leading authority in credit repair and financial education.

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