Past due medical bill impact on credit score
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Back in 2010 I was involved in a car accident. I was taken for en examination, and in the end was charged around $1000 for the procedure.
My spouse at that time told me not to pay the bill immediately because the insurance company should cover it, or at least most of it. Things went by and the bill simply slipped my mind and remained unpaid. I never received any new bills or notifications from the hospital or any other entity.
A few days ago, while reviewing my credit report I noticed 2 new negative items reported. Both are connected to the accident. Naturally – my score went down immediately.
What should be my line of action here? Should I contact them to pay it immediately? And if I do – will it go off my credit report, or will it remain there for 7 years from now? I plane to buy a home two years from now, so it may have a big impact on me.
Any additional advice is always welcomed.
It stays for 7-1/2 years on your credit report
Derogatory items fall off your credit report 7-1/2 years from the date of first deficiency (default). This is per the FCRA and nothing restarts that clock. Paying will not improve your score, nor get the items removed.
You could try to negotiate a Pay for Delete Agreement with the collection agency. Some will and most won’t. Be sure to get a written settlement agreement before you pay and do not give the collector direct access to your bank account.
If no one is contacting you about these debts, you may want to just let sleeping dogs lie and let them age off. The older they get, the less impact on your score. Of course, if you plan to apply for a mortgage any time in the near future, mortgage lenders will require those items be resolved before approving a mortgage.
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