To what extent is your credit affected when a 1000 dollar delinquent but now paid medical bill reported to the bureaus despite an otherwise perfect history?
The exact impact of a $1,000 delinquent but now paid medical bill on your credit score can vary based on a number of factors, including:
1. Credit History: Your overall credit history, length of credit, and payment behavior on other accounts play a significant role in determining the impact of the medical bill. A single delinquent medical bill may have less impact on a well-established credit history with a long history of on-time payments.
2. Payment Status: If the medical bill has since been paid, its impact on your credit score may be reduced compared to an unpaid or overdue debt. Paying the debt promptly and in full can demonstrate your willingness and ability to resolve financial obligations.
3. Credit Score Range: The starting point of your credit score can affect how much it's impacted by the medical bill. For individuals with a higher credit score, a $1,000 delinquent medical bill may cause a more noticeable drop compared to those with a lower initial score.
4. Credit Bureaus: Different credit bureaus may weigh medical debt differently when calculating credit scores. For instance, FICO scores may consider certain medical debts as less severe compared to other types of debt, especially if they've been paid or resolved.
5. Time Since Delinquency: The length of time since the medical bill became delinquent can also affect its impact on your credit score. The more recent the delinquency, the more significant impact it may have.
6. Number of Negative Accounts: If you have multiple delinquent accounts or negative marks on your credit report, the impact of the medical bill may be compounded, leading to a more noticeable drop in your score.
To provide a general idea, a $1,000 delinquent medical bill that is paid could cause a score drop of around 20-50 points, depending on your individual credit profile and the factors mentioned above. However, this impact is temporary, and your score can recover over time with responsible credit behavior and consistent on-time payments.
It's important to note that, under the Fair Credit Reporting Act (FCRA), medical debt can only be reported on credit reports if it has been unpaid for at least 180 days (6 months). If you have a medical debt that is still within this period, you may be able to negotiate a payment plan or settle the debt to prevent it from being reported to the credit bureaus.