September 22, 2019

Medical Debts to be Removed From Credit Reports

With the terrible economy, high unemployment, and loss of health insurance,  there are lots of people who have their credit score negatively affected by medical bills.

This is happening more and more considering the fact that the United States economy has been in disarray for the past several years. People are constantly struggling to get ahead and medical bills being listed as blemishes on a credit record can stop people from reaching their full potential.

There has recently been a proposal by Rep. Heath Shuler that would require that the three credit reporting agencies delete any medical debt of up to $2,500 within 45 days of the bill being paid off.

Right now when you have a medical debt it stays on your credit report for seven years even if you pay it off before then.

The bill has not yet been sent to the Senate, but supporters of it are hoping to see it voted on as early as the fall. If this is approved there are many people who would qualify for loans and credit cards that they were not formerly eligible for.

Opponents of the bill feel that taking medical debt off of credit reports gives credit card companies a false impression of the type of person that they are lending it to.

The main reason why credit reports are checked are so that lenders can see if the borrower usually pays debts back in a timely manner. Opponents feel that not having medical debt available on a credit report will lead to lenders not being paid back when they should.

While that may be a valid point, there are many people who cannot pay back bills right away because they have illnesses that require them to seek expensive medical treatments on a regular basis. Supporters of the bill feel like these people should not have a problem qualifying for mortgages and things of that nature because of something that is beyond their control.

In CNN’s coverage, a consumer credit specialist weighed in on the topic and he says that he believes the real problem is the fact that hospitals are not working with their customers enough to figure out why they have fallen so far behind.

Read more:
CNN Money
Unpaid Medical Bills Can Ruin Your Credit
Unpaid Medical Bills Can Negatively Impact Credit
How Medical Bills Affect Your Credit

Reviewing Your Credit Score Can Help You Avoid Disaster

Thinking that ignorance is bliss? Well, maybe so, but knowing your credit score can save you a lot of time, effort and pain in the future.

With identity theft on the rise, periodically checking your score ensures that you haven’t unknowingly been a victim. Further, all of us (yes, even creditors) make mistakes. And when every points counts, these are mistakes worth catching.

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Your Credit Can Affect Your Ability to Get Hired

Your credit score might affect your ability to get hired.  This is particularly true if the job at stake involves the company’s financial matters.

Using credit reports is another tool that employers use when conducting background checks. It’s all a part of the process to make sure they do their homework on candidates and make sure they are making the right choice when hiring. It has become another part of the hiring process – like checking references, validating employment history and/or verifying educational records.

If your credit has been checked in conjunction with the application for a job, you have a right to know. Further, if you are rejected for a job because of your bad credit, the employer is required by law to present you with the information they obtained.

Read more here about your rights as a job applicant and how your credit score might affect you.

Improve Your Credit Score

A good credit score is essential in today’s modern world where so many things are purchased on credit. As a result, one feels like they are under a microscope with every financial action taken. These scores will reflect late or missed payments, bad checks and a number of other things to do with making good on one’s promise to pay in a timely manner.
Credit Score

Any application for credit, whether purchasing a car, store merchandise, or something else, will require a credit score report. If this report is bad it will result in one of two things. Either the application will be refused or one will be able to make the purchase, usually at higher interest and higher payment.

Credit reporting companies receive reports from banks and merchants who are dealing with anyone purchasing on a payment plan. These reports will be carefully put together and scanned for such things as payment history, new and active credit and outstanding debts. These will be analyzed to produce the score that is reported to any business making a request.

The most prominent credit scoring companies are Equifax, Experian and TransUnion. Each company has a report on individuals so there are actually three reports. A merchant or bank can use any of them for a request. The scores may vary from one company to the other because of their procedures in reaching the total. Any report below 620 is considered risk, 800 excellent, with a median of 723.

For many years it was difficult and expensive to obtain a copy of one’s report. Today, under the law, a person is entitled to one free report a year. This has made it easy to check for errors or identity theft on a periodic basis. If an error is discovered, one should immediately go to the merchant, bank or credit card company involved and have a correction made.

It is possible to locate companies, on the Internet, who will keep a eye on one’s credit reports. This is an excellent way to be sure that identity theft or unusually activity is occurring. These companies often offer such things as instant email notification, of unusual activities, as well as insurance against identity theft.

Strange as it may seem, if one goes through life paying cash for everything and never purchasing on a payment plan, they will have a poor credit score. This is because no history, with the possible exception of utility bills, has been established regarding their paying habits. Since a person never knows when such a score will be required, it is important to establish a credit history. This can be done very simply by such things as having a credit card, making a small purchase each month and immediately paying it off.

If one has a bad credit score and wants to repair it there are services such as credit counseling, mortgage brokers and others, listed on the Internet, who can get a person on the right track to a good record. These people are experts in the field of finance and can analyze the situation and outline a solution. It is not easy to repair credit history but it can be done with perseverance and sticking to a program.

Find out more: http://www.federalreserve.gov/consumerinfo/fivetips_creditscore.htm

Understanding Your Credit Score

Whenever a person makes a purchase that requires regular payments their credit score will be checked. This score will indicate how reliable they were in past purchases. It will also show credit accounts with various companies and any irregularities, such as payments made with insufficient funds or not made on time.
Credit Score

Having a good credit score is essential in today’s world when so many purchases are made with long term payments. Unfortunately, this also opens a wide avenue for purchasing goods with a large number of vendors. This will also show up on a credit report and may be detrimental as indicating that there is too much outstanding debt.

A credit report, when looked at by a rating company, will be scanned for payment history, outstanding debts, new credit, credit history and credit currently active. All of these have certain percentage points that are combined to arrive at the rating total. Ordinarily, this score can range from the lowest of 300 to a perfect 850.

Merchants and lenders sent reports to certain reporting companies. The ones most used are Equifax, Experian and TransUnion, with reports available from any of these companies. Although scores may vary somewhat between these companies, scores below 620 are not good and are considered a risk, with 723 the median score.

Under the law, a person is entitled to one free credit report a year, simply by asking. With the high event of identity theft and the possibility of error, it is a good idea to check one’s report every year. Many times there are errors that need to be corrected in order to keep one’s good credit record.

There are companies located on the Internet that provide a service which keeps a person informed of their credit score, analyses the report regarding anything that affects it, monitors and alerts the client of any suspicious activity. Many also will send an immediate email if something appears on the record that looks unusual and provides an identity theft insurance with no deductible. A number of people are engaging this service because of the identity theft activity of the past few years.

A number of things can influence a person’s score. Such a thing as ‘no debt’ can be a detriment because there is no record showing that one would be good at making regular payments. So, if in the habit of paying cash for everything, taking out something like a credit card and paying it in full each month will establish a credit record. Even if the purchases are as little as $10.00 each month, it will set the pattern.

Some people have found the services of a mortgage broker or another service good way to repair credit. Their experts will analyze the situation and map out a strategy to bring the record back up, into an acceptable range. If there is a problem of a low rating, changes will not take place over night. It takes time to make changes in financial activities as well as for payment reports to reach a rating company and the score be changed.