WalletHub, Financial Company
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Yes, medical bills can affect your credit when you're looking to buy a house. Unpaid medical bills damage your credit report, which in turn will lower your credit score. A lower credit score will hinder your chances of being approved for any type of loan, including a mortgage.
Still, buying a house when you have medical debt is possible. Depending on the lender, you may get approved for a loan with a higher interest rate.
Lauren Smith, WalletHub Staff Writer
@laurenellesmith
Yes, medical bills can affect your credit when you're buying a house. If you have over $500 in medical debt in collections for more than a year, those unpaid medical bills can lower your credit score, limiting your ability to secure a mortgage.
The three major credit bureaus recently changed their reporting practices regarding medical debt. You can check out the new rules below.
Changes to Medical Debt on Consumer Credit Reports
- Paid medical debt previously in collections will not be listed at all
- Only medical bills over $500 in collections for at least a year will be reported
- Collections under $500 will no longer be listed as of the first half of 2023
If unpaid bills are adversely impacting you, learn how to rebuild your credit and access personalized tips for improving your score for free here at WalletHub.
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