Healthcare Costs and Your Credit Score

What is a credit score?

A credit score predicts how likely you are to pay back a loan on time. Companies use a mathematical formula—called a scoring model—to create your credit score from the information in your credit report. A credit report is a statement that has information about your credit activity and current credit situation such as loan paying history and the status of your credit accounts.

How do you get a good credit score?

There’s no definite answer, but these are some helpful guidelines.

  • Pay your loans on time, every time.
  • Don’t get close to your credit limit.
  • A long credit history will help your score.
  • Only apply for credit that you need.
  • Fact-check your credit reports.

How does medical debt affect credit?

Medical bills only affect your credit score if they go unpaid. As of 2017, there is a 180-day waiting period before medical debt shows up on your credit report, but if your bill goes to collections, it can seriously damage your credit.

What if the medical bill on my credit report is there in error?

You can dispute errors on your credit report. Click here for step-by-step instructions for reporting an error on your report.

For more information on credit reports and how they affect you, click here.