Apr 10, 2023
Staying healthy is essential to living well, yet medical bills can wreak havoc on your finances. Research from the Peterson Center on Healthcare and Kaiser Family Foundation reports that 3 million people hold over $10,000 in overdue medical debt. If you're on the hunt for credit repair in Austin, understanding how medical bills affect your credit score is essential.
Although unpaid medical debt that is in collections may have an adverse effect on your credit score, it is noteworthy that as of April 2023, medical collections that are under $500 will no longer be included on your credit report by credit reporting agencies. This alteration in credit reporting eliminates nearly 70% of collection accounts from consumer reports.
Starting July 1, 2022, American consumers will be relieved of the financial burden caused by medical collection debt on their credit reports. Furthermore, the waiting period before unpaid medical collection accounts are reported to creditors has been lengthened from 6 months to one year, allowing individuals more time to resolve their accounts with healthcare providers without harming their credit scores.
When reviewing your medical bills, be sure to carefully analyze them and cross-reference them with the explanation of benefits from your health insurance. If you perceive any discrepancies, contact either the healthcare provider or insurer promptly. Moreover, request an itemized statement to gain a stronger comprehension of what charges are being applied.
If all of this information is overwhelming, credit repair professionals can be of great help. US Best Credit Solutions specializes in tackling debt and credit repair in Austin. With our knowledge of the local financial landscape, we can help you navigate out of your current predicament, allowing you to get back on track financially. Contact us today if you need assistance with credit repair in Austin. We look forward to helping you improve your financial standing!