What To Do About Medical Collections On Credit Report Statements

Understanding what information is on your credit report

We all know that your credit report can make or break your chances of getting credit, and when you look for a mortgage or a loan or even just think about insurance or changing banks; your credit report becomes seriously important. It is critical that you know what information is on your credit report because, sometimes it can be wrong. That may seem crazy, after all a credit report is important and contains critical financial information collected from reputable financial organizations, but, yes, all too often the information is wrong and could be harming your credit reputation. Your credit report will contain; all the times you have ever applied for finance; how you are managing your bank accounts and mortgage; all the addresses you have lived at; your names and aliases, and your marital status. If you have defaulted on a payment and the time elapsed is longer than 180 days then it will appear on your report as a default that can stay there for up to 7 years. For example, medical collections on credit report statements indicate that you have not paid your medical bills, and the debt is now with a collections agency.

How to correct errors on your credit report

Firstly, understand that there are three credit report companies and that you can request a copy of your credit report, for free, three times a year. Ask one company for your report, then work your way through the others at intervals so that you can track the status of your credit. This is helpful if you are going to challenge medical collections on credit reports that are incorrect. If there is anything on your report that is incorrect, write down all the details and contact the agency or company concerned, making sure you quote any relevant reference numbers. It may be that you have paid a bill, but the company has not notified the credit agencies. Insist that they confirm in writing that the debt has been paid and that they will inform the agencies immediately. If there is a bill or charge on your report that you do not recognise, you may have been the subject of identity theft or fraud. It is best to have a lawyer if you have a number of items or queries on your credit report, as they can get mistakes and errors sorted far more quickly than you will.

Getting collection data removed through negotiation

Some medical collections on credit report statements are valid; you do owe the money, and you are in default, but you need to improve your credit if possible. This is where having a lawyer helps greatly; they can negotiate a reduced sum for you to pay immediately, in return for the medical collection debt to be removed from your report. The most important thing is to know what your credit report says; it may be a lot better than you think, or a lot worse, but in this case, ignorance is not bliss.


Source: Credit Cards For People With Bad Credit Rating

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