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How does medical debt impact credit rating?

Having any type of debt has some effect on your credit rating in Georgia. However, not all debt is created equal in the eyes of the credit bureaus. One type of debt that they may treat in a different way is medical debt. Due to the state of healthcare many people have medical debts on their credit records. It is not uncommon at all. It is also a special type of debt because it is much different than credit cards or loans. Typically, if you have medical debt, it is because you truly cannot afford to pay it.

According to Experian, the credit bureaus give you more time before putting medical debt on your credit report. They generally wait about six months. This gives you time to fix any insurance issues or to pay the debt before it impacts your credit in any way. However, after that time, it does show as an unpaid debt on your report and will impact your credit score.

FICO does not weigh medical debt the same as other debts, though. It will not have as big of an impact as a missed credit card statement, for example. If you pay the debt, the effect on your credit score usually goes away, which is much different than how other debt affects your score.

Do be aware that if you have medical debt reported on your credit, it will stay there for seven years unless you pay it off or otherwise take care of it. This information is for education. It is not legal advice.

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