When applying and seeking new credit your fico credit score is only a part of the approval process. And my understanding is that the next scoring model will be less severe when it comes to medical debt being in collections. Even when this does happen you still need to meet the lender's requirements. And talking to the different creditors I have found out the following. Any collection account is a derogatory mark on your credit report and the balance that is still owed also comes into play when it comes to being included in your debt to income ratio. The same thing goes with deferred student loans. So the lender will calculate what your monthly payment would be. And as the balance on your education loan goes up due to accumulated interest your payment amount also goes up.
So the point is this. Do not rely on the fico score solely to get approved. Any creditor will have to determine each applicant's level of risk. A collection trade line is the same to any lender whether it is medical or not. I know this because years back I went through this. Make payment arrangements with your medical provider & as long as you stick to the payment arrangement they will not put it on your credit report.
