topic Re: 2 Old, Small Medical Bills--What Is the Best Strategy to Increase Score? Pay Now? in Rebuilding Your Credit

2 Old, Small Medical Bills--What Is the Best Strategy to Increase Score? Pay Now?

Anonymous — Tue, 15 May 2012 17:21:21 GMT

I have a CR of about 652 (EXP & Equifax; TU is ~20 points higher). I would like to increase my score in preparation for buying a new car in the next 2 or so months. My car is a 97' Saturn w/157,000 miles; it is starting to run badly; I must have a reliable car. I have 2 jobs; make about 70K (I don't know if this has any relevance, or not). I do not own a home; I rent.

Have 2 CCs; one with $600 credit, the other with $400 credit. I use these each month, and I pay in full after each transaction. So I keep the balances at 0, most of the time.

Unfortunately, I used to suck, and didn't pay ANY bills. Hence, my current scores.

I have only 2 outstanding (open) medical/hospital bills on my credit report right now:

1. Account Resolution Corp opened 6/1/06 $95 balance

2. Consumer Collection Management opened 8/01/08 $140 balance

One of these 2 companies, Consumer Collection Management, recently sent me a payment reminder notice stating that I actually owe them $535.00.

I sent PFD letters to each company, and only #2 responded (via phone), saying that the hospital refused to enter into this arrangement.

If I want my score to increase, should I just pay each of these companies off in full right now? I do have the $ to do so, but I certainly don't want to negatively impact my current score. It's already low enough.

Another thing: In July, I plan to move to another apartment (towards the end of July), and I also would like to get a no-fee credit card that has a higher limit, if possible. When, and in what order, would YOU complete all of these activities (buy a new car, move to another apt. (I haven't moved in 15+ years), find & apply for a better CC with a higher limit and hopefully no annual fee?)

Thanks in advance!

Re: 2 Old, Small Medical Bills--What Is the Best Strategy to Increase Score? Pay Now?

Anonymous — Tue, 15 May 2012 17:31:54 GMT

Where did you obtain your scores?

Google the HIPAA process to deal with the medicals. The process can't be discussed here. Paying those collections won't help your score one bit, only removal of the collections will. There have been examples of posters who have paid collections and when they updated their score dropped (minimal, but a still a drop). That's not supposed to happen and it's in the way the update is done, something with the coding.

If you're keeping your utilization on your current cards low then a card with a higher limit would go to the bottom on my list.

Re: 2 Old, Small Medical Bills--What Is the Best Strategy to Increase Score? Pay Now?

01mommy — Tue, 15 May 2012 18:29:58 GMT

@Anonymous wrote:

I have only 2 outstanding (open) medical/hospital bills on my credit report right now:

1. Account Resolution Corp opened 6/1/06 $95 balance
2. Consumer Collection Management opened 8/01/08 $140 balance

One of these 2 companies, Consumer Collection Management, recently sent me a payment reminder notice stating that I actually owe them $535.00.

I sent PFD letters to each company, and only #2 responded (via phone), saying that the hospital refused to enter into this arrangement.

If I want my score to increase, should I just pay each of these companies off in full right now? I do have the $ to do so, but I certainly don't want to negatively impact my current score. It's already low enough.

Thanks in advance!

Contact the hospital/provider billing offices DIRECTLY and ask to speak with someone in records about an old bill; in my experience, the hospital actually has a policy to delete after payment...something the CA never mentioned in the two years they hounded me for payment and refused to do a PFD! Within two weeks of payment, the collections were gone from my reports and I didn't have to even speak with the CA! Try asking and see where it gets you, best of luck!

BTW, these bills went as far back as 2007!

Re: 2 Old, Small Medical Bills--What Is the Best Strategy to Increase Score? Pay Now?

Anonymous — Wed, 16 May 2012 12:07:43 GMT

I obtain my scores from Experian, to which I subscribe. I get unlimited Experian scores, and scores from the other 2 as I pay for them.

I've Google'd HIPAA many, many times. I've read mixed reviews on its efficacy. I've heard that a lot of the HIPAA form letters out there demand things of the creditor that are not legally required of them. Many of the postings about HIPAA are old, and not recent. I just wish there was one place that I could go for reliable advice on how to do this for an old debt---I will read more on this forum, and see what I can find out. I see that on 05-15 someone posted that they've successfully obtained a medical deletion.....

Thank you for taking the time to give me advice. I am going to do my best to follow it!

Re: 2 Old, Small Medical Bills--What Is the Best Strategy to Increase Score? Pay Now?

Anonymous — Wed, 16 May 2012 12:09:19 GMT

This is great advice...I never thought of doing it. I will do this today! For 1 of the debts, it's a hospital, I should have no problem contacting them. For the other, I am going to have to try to figure out who the original debt owner is so that I can see if I can settle. Thanks!

Re: 2 Old, Small Medical Bills--What Is the Best Strategy to Increase Score? Pay Now?

rckstrscott — Wed, 16 May 2012 13:19:01 GMT

@Anonymous wrote:
I obtain my scores from Experian, to which I subscribe. I get unlimited Experian scores, and scores from the other 2 as I pay for them.

I've Google'd HIPAA many, many times. I've read mixed reviews on its efficacy. I've heard that a lot of the HIPAA form letters out there demand things of the creditor that are not legally required of them. Many of the postings about HIPAA are old, and not recent. I just wish there was one place that I could go for reliable advice on how to do this for an old debt---I will read more on this forum, and see what I can find out. I see that on 05-15 someone posted that they've successfully obtained a medical deletion.....

Thank you for taking the time to give me advice. I am going to do my best to follow it!

Well, if you purchase your scores from Experian, they are likely not accurate as they are not true FICO scores, and no lenders will use those scores. So you need to find out where you stand. I don't think you have to do it this very second, but soon enough you will want to order them from this website.

Well, often times a medical collection is assigned and not sold debt. So the OC still owns the account, they just hired a collection company to collect. This can afford you at least some places to negotiate.

You should contact the hospital as mentioned in the other post. Sometimes they will work with you and let you pay off the debt through them. I did this with 3 seperate medical collections, and I was able to negotiate for payment in full, that the hopsital 'recall' the account from collections. This isn't a legal term, and the collection company does not have to agree to any of it (they get their commission regardless of who you pay) -- but they often will because THEIR client is the hospital, and they want to make their client happy.

Keep in mind, the hospital has no standing to have the colleciton account removed from your file, but their working relationship with the CA might help you procure a deletion.

If that does not work, I would personally pay in full, and then GW AND HIPAA mail at the same time, kind of two pronged attack.

I always think, that you have more chance for a GW deletion if you are able to pay in full.

-scott

Re: 2 Old, Small Medical Bills--What Is the Best Strategy to Increase Score? Pay Now?

Anonymous — Wed, 16 May 2012 19:34:41 GMT

Re contacting the hospital vs just the CA, I've got bad news....I did contact the OC today. The hospital still owns this debt, but the CA is collecting on their behalf). The hospital told me that I needed to pay in full and pay in full to the CA, but on their part, they would only be willing to tell the CAs that I had "paid in full," and not to delete. The woman representing the hospital told me that I should have never screwed up, what was I thinking (I was like--really? Do you think that is news to me? Did I really need to hear that from you, mommy? )

Now what I am thinking that I should NOT pay this one at all, and that the hospital/CA should receive a big fat ZERO, since paying this off will only re-age my debt, and also dink my credit score. Right?

It's way past time now for me to start the HIPAA process, right? And then, if that strategy fails, then I should just acknowledge that I am just SOL, and j hold tight until these drop off in a few years. Right?

Re: 2 Old, Small Medical Bills--What Is the Best Strategy to Increase Score? Pay Now?

2NE1 — Thu, 17 May 2012 19:57:10 GMT

even if you wait for them to drop off, this collection/debt could pop up on your report again and eventually you'll have to deal with it. I think it's better if you pay it but try to do it with the Hospital. Perhaps you can go in person and talk to someone about your situation.