CONSUMER REPORTS -- More than one-quarter of Americans with health insurance have received a surprise medical bill, according to a new survey from Consumer Reports.
Those healthcare charges can have big consequences, because medical bills can drag down your credit score.
New rules may help. The three big credit agencies –– Equifax, Experian, and TransUnion –– are now required to wait one-hundred-eighty days before putting an unpaid medical bill on a credit report.
READ: HOW TO RAISE YOUR CREDIT SCORE IN JUST 6 MONTHS!
So, if you’re disputing a claim, let the hospital or doctor’s office know you need more time to sort things out. If your insurance company ultimately pays a bill, it has to be taken off your credit report.
If the bad debt doesn’t disappear, you’re going to have to follow up with your healthcare provider to get proof of payment, and you might have to insist that the debt is removed from your credit report.
If you need help resolving medical billing problems, an organization called the Patient Advocate Foundation can be a good resource.
Consumer Reports also cautions against plunking down potentially high-interest-rate credit cards to pay medical bills. Many healthcare providers offer installment plans to help you make payments with little or no interest.
Summit Credit Union offers these ideas for what to avoid and what to do to raise your score quickly:
- Going from no credit to good credit
- Get a car loan and make payments on time
- Get a credit card and pay off monthly
- Do not apply for anything else
- Could have a 675 – 700 score in 6 months
- Common mistakes
- Paying off a credit card and closing the account
- Maxing out a credit card
- Too many credit applications in a short period of time
- Paying less than the minimum payment