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Medical Bills and Credit Repair

by: Sean Michaels

Update: 09/2021


Medical Bills and Credit Repair

Unfortunately, sometimes in life accidents and illnesses happen. These tragic events can take a huge toll on individuals, families, and communities. They can also produce staggering medical bills.

Medical debt is one of the fastest growing categories of debt in this country. People are having a challenging time paying for the health care they need for themselves and their families. These medical bills can create complications for individual’s future and for their finances. If you or someone you love is struggling with medical bills, the most important thing to do is focus on getting better.

However, when recovery is over you need to figure out your finances. Many people don’t realize the impact medical bills can have on their credit score, or the ways that credit repair services can help your score recover from medical bills.

How Can Medical Bills Affect Your Credit Score?

Medical bills affect your credit score like any other kind of debt or financial obligation. Many people overlook this fact because they are focused on getting better. Understanding the way that medical bills can alter your credit score is an important first step to make sure your credit and finances are in order.

Debt-to-Income Ratio

The first way that medical bills can alter your credit score is by affecting your debt to income ratio. The debt to income ratio is a measurement of how much total debt you have compared to how much money you take in.

Your debt to income ratio is an important consideration for lenders and creditors because if you have too much debt for your income level then you are at a greater risk of falling behind on payments or even defaulting. Therefore, lenders and creditors are hesitant to extend offers to people with an unbalanced debt to income ratio. Moreover, even if you do get offers, the interest rates and fees you get on those offers will be much higher because the company will seek a larger profit to justify the risk of lending to you.


Medical bills can also affect your credit score based on your payments. If you are able to pay your bills on time then your score won’t be affected as much. However, if you fall behind on payments then these missed payments will be reflected on your credit report. A missed or late payment can bring a consumer’s credit score down substantially, as payment history is one of the biggest factors credit reporting agencies consider when determining your credit score.


If you’re having problems with your payments, you can also be sent to collections. Medical debt collectors are notorious for aggressively pursuing medical debts. After all, they get paid by collecting on debts, so they’ll use every tool legally available, and sometimes tools which aren’t legal, to collect.

Collection agencies will notify credit reporting agencies that they are attempting to collect on an individual’s debt. This information is entered on the consumer’s credit report. Being sent to collections or having a collection agency coming after you can result in a huge decrease in your score. Moreover, the fact that you were sent to a collection agency will make other lenders and creditors think twice before approving you for a loan or line of credit. These kinds of credit report entries will also dramatically increase the interest rates you’re offered on any credit or loan product, costing you hundreds or even thousands of extra dollars.

Credit Repair Can Help with Medical Bills

Credit repair services can help with the ramifications of medical bills. These agencies are experts at dealing with tricky financial situations, and they’ll be able to help reduce or even eliminate the negative credit score consequences of medical bills.

One of the most helpful aspects of credit repair services is that they will frequently negotiate with your creditors and lenders to help you establish a new payment plan. These new payment schedules are designed to work within your budget and can lower your monthly bills and help you pay your debts off faster. As a result, you won’t have to worry about late or missed payments anymore.

Additionally, credit repair companies such as Lexington Law Firm can point you to helpful financial products that can consolidate your debt, or even get some or all of your debt forgiven. There are many specialized financial products on the market today, and credit repair services will know which ones are best for your particular situation.

Credit repair services can also help with collections. These companies offer several resources for dealing with collection agencies. First, credit repair companies can tell you about the laws that govern debt collection. This can help you determine if your collector is operating legally or not. No one should be harassed by collection agencies and representatives trying to get money. The stress and anxiety that illegal collection tactics create can make it difficult to even consider how you get your overall finances in order. Moreover, if a company is using illegal debt collection methods then you may have grounds for legal action against them.

Another way that credit repair services can help with debt collections is by negotiating with the debt collection agency to set up a payment plan that works with your budget. Credit repair companies can also point you toward programs that focus on helping individuals who are overburdened with medical bills and can’t keep up. These services can be a tremendous boon to consumers, and can let you focus on getting better instead of worrying about your finances.

As you can see, credit repair services have a lot to offer when it comes to dealing with medical bills. No one should have to focus on bills when they’re trying to get better. Credit repair companies can help you keep your attention on the road to recovery by helping you negotiate new terms on your medical debt, pointing you towards programs that can help you with medical debt, and by helping you budget and plan your finances so that you’ll be able to handle your bills. As a result, credit repair services are an excellent choice if you’re trying to figure out how to resolve your medical bills.

Sean Michaels

Sean brings a decade worth of experience in credit repair to our company. Sean started his career working in an accounting department for a major credit card company. This was a natural fit, given his bachelor’s and master’s degrees in accounting.