credit report how to improve
credit report how to improve
When paid off will collection services be taken off my credit report and improve my credit score?
I go in a car accident and am about to finish my lawsuit and get my money and pay off all the medical bills. I have over $10,000 in unpaid medical bills and some of it is on my credit report. When the bills are paid off will my score improve? Thank you
Contrary to what some may say, any reduction in balances owed does improve ones score. The debt goes from being derogatory to paid in full which due to the fact that it had gone to collections remains potentially negative. IT may not be a significant increase, but one none the less and lenders will give it far less consideration once paid.
Your attorney should have notified the hospital and/or medical provider that you were in litigation and that payment of debts would be satisfied upon completion of civil action.
You should have your attorney draft a letter requesting that a pay for deletion agreement be reached before payment is made to the collection agency. Creditors listen to attorneys more then they do regular people. You may even get your attorney to notify the reporting agencies and request the debts be removed as they were pending litigation at the time they went into collections.
Ask your attorney if your state is one that makes “balanced billing” illegal. This is where the medical provider asks that the insured pays any difference that the insurance company did not cover.
Hope this helps answer your question.
