topic Re: Fixing Medical Debt in Rebuilding Your Credit

Fixing Medical Debt

Anonymous — Tue, 23 Jul 2013 16:52:08 GMT

Hi, I'm trying to repair my score in a effort to get a home mortage next year.

About 3 years ago I had no health insurance and ended up unemployed and homeless. I fixed all that,and paid off some debt and stuff, but alot of those medicla bills ended up on my credit report.

I joined MyFICO to try to figure out how to get my score high enough to get a mortage. I have had a good job for the last 2 years, well paying, saved up some money, but my credit score just....its low.

One thing I dont understand is that I'm signed up with transunion and I get my 3 bureau report from them. My score on this website is 70 pts less than the 3 bureau report on Transunion. They were both drawn on the same day and here my Equifax score is 595 and on the other site, my Equifax score is 665.

The level of debt is the same. So why the difference?

Any way my point was, what do I do about the medical debt? How can Improve my score? I pay it all off..and then my score barely does anything.

Re: Fixing Medical Debt

DaBears — Tue, 23 Jul 2013 17:22:59 GMT

@Anonymous wrote:
Hi, I'm trying to repair my score in a effort to get a home mortage next year.

About 3 years ago I had no health insurance and ended up unemployed and homeless. I fixed all that,and paid off some debt and stuff, but alot of those medicla bills ended up on my credit report.

I joined MyFICO to try to figure out how to get my score high enough to get a mortage. I have had a good job for the last 2 years, well paying, saved up some money, but my credit score just....its low.

One thing I dont understand is that I'm signed up with transunion and I get my 3 bureau report from them. My score on this website is 70 pts less than the 3 bureau report on Transunion. They were both drawn on the same day and here my Equifax score is 595 and on the other site, my Equifax score is 665.
The level of debt is the same. So why the difference?

Any way my point was, what do I do about the medical debt? How can Improve my score? I pay it all off..and then my score barely does anything.

Hi DrkRaven0905 and welcome to the forums!!!! The scores you get from the TU EQ and EX are Fako scores, their own scoring models. Here on myFICO you get Fico scores. Transunion on here is TU98. Older scoring model still used by some lenders, not all tho. Equifax on here is Beacon 5.0 which is used by all lenders including mortgage lenders. Experian on here is the 08 model which a lot of lenders do not use yet cause it's a brand new scoring model. Most lenders will use the experian scoring model 04. Hope that helps answering your questions!!

Community Leader,

DaBears

Re: Fixing Medical Debt

DaBears — Tue, 23 Jul 2013 17:25:51 GMT

To answer your question regarding the medical debt. If it is paid in full I would send GW (Good Will) letters to the CA or OC asking if they would be willing to delete their trade lines. Same thing that goes for the other accounts that are paid off. Send GW letters. How many credit cards do you have now and what is your current Util % on them? Anymore derogatory information on your reports.

Re: Fixing Medical Debt

Anonymous — Tue, 23 Jul 2013 18:19:43 GMT

I have one credit card with 22% intrest rate that is paid down to $108, and I use it occasionally to keep credit history. I pay my bills all ontime, include my car payments. I only have one late payment on record from my car (durng the time I was homeless) and have been ontime ever since

I've been doing well over the last 2 years. My only issue is the paid off medical debt. I'm not sure what to do.

Re: Fixing Medical Debt

DaBears — Tue, 23 Jul 2013 20:18:49 GMT

@Anonymous wrote:
I have one credit card with 22% intrest rate that is paid down to $108, and I use it occasionally to keep credit history. I pay my bills all ontime, include my car payments. I only have one late payment on record from my car (durng the time I was homeless) and have been ontime ever since
I've been doing well over the last 2 years. My only issue is the paid off medical debt. I'm not sure what to do.

Keep that one credit card between 1-9% Util per month. Remember Fico has no memory of what you are using during the month only when it reports to the CRA's each month. You can call your credit card company and find out when they report to the CRA's.

Installment loans only account for 10% of Fico scoring. Having a mixed credit file is good and a thick file is really good. I would write a good will letter to the finance company explaining your situation the you lost your job and homeless(sorry to hear that ) and ask to see if they can remove the 30 day late. If the medical is paid I would send GW letters to the collection agency and kindly ask them to delete their tradelines.

Re: Fixing Medical Debt

Anonymous — Tue, 23 Jul 2013 20:45:41 GMT

I've been doing research for a while and I have a question.

I heard that once I have paid my debt to the medical instituion (a hospital) that the institution can no longer share my information with a collection agency because my information was only allowed for payment purposes and that the payment was made. Is this true? Can they no longer verify anything with agency since I have paid the bill?

Thanks

Re: Fixing Medical Debt

DaBears — Tue, 23 Jul 2013 20:50:11 GMT

Did the hospital pull back the accounts from the CA? Then you paid the Hospital? If so the CA must remove their TL as they no longer have collection authority.

Re: Fixing Medical Debt

Anonymous — Tue, 23 Jul 2013 20:50:28 GMT

@Anonymous wrote:
I've been doing research for a while and I have a question.

I heard that once I have paid my debt to the medical instituion (a hospital) that the institution can no longer share my information with a collection agency because my information was only allowed for payment purposes and that the payment was made. Is this true? Can they no longer verify anything with agency since I have paid the bill?

Thanks

Who is reporting the OC or the CA? Who did you pay, the OC or the CA?

The hospital does not have to send detailed records to the CA in order for them to collect.

I guess I don't understand what you are asking here. Can who no longer verify?

Re: Fixing Medical Debt

Anonymous — Tue, 23 Jul 2013 21:01:02 GMT

Paid the hospital directly. If I paid them, the OC, directly....does the CA have authority to still show up on my credit report?

Re: Fixing Medical Debt

DaBears — Tue, 23 Jul 2013 21:04:15 GMT

@Anonymous wrote:
Paid the hospital directly. If I paid them, the OC, directly....does the CA have authority to still show up on my credit report?

No, cause they do not have collection authority on the accounts anymore.

Re: Fixing Medical Debt

Anonymous — Tue, 23 Jul 2013 21:08:01 GMT

So what do I do then? All these except 2 are paid. and I know the Two unpaid are real, and they are mind and are going to take a while for me to save up.

What do I do about the other paid ones. I don't paid collection agencies because well....they are annoying...and I'd rather pay the doc I owe.

Re: Fixing Medical Debt

DaBears — Tue, 23 Jul 2013 21:52:20 GMT

Are all the medical listed with the same Collection Agency?

Re: Fixing Medical Debt

Anonymous — Wed, 24 Jul 2013 12:36:21 GMT

No different agencies.

Re: Fixing Medical Debt

DaBears — Wed, 24 Jul 2013 14:25:06 GMT

Send GW letters to the ones that are paid.