How Not Having Health Insurance Can Damage Your Credit

March 17th, 2017 | Author:

[F]or many, health insurance is a cost they can’t afford. Premiums have gone up and co-pays are often higher as well as deductibles. If you have decided that you just can’t have health insurance, be aware of what it may really cost you.

Major Health Issues

As long as you are healthy, not having health insurance may not be a big deal. However, one injury or serious illness can set you back thousands of dollars. For the average person, this may mean wiping out their savings. For others, it may mean accruing a bill they can’t afford to pay.

Just a few nights in the hospital or one surgery, and you could be thousands of dollars in debt. Even though many hospitals and clinics offer payment plans, you may have a hard time coming up with a minimum payment if your injury has resulted in time off work.

Collections Accounts

If you are unable to pay your medical bill, the clinic or facility will at some point send your account to a collections agency. The agency will try to collect on the money while reporting your nonpayment to at least one of the three credit bureaus.

Once you have a collections account added to your credit history, your credit score will drop dramatically. The better the credit score, the more it will drop. This information will stay on your credit report for up to seven years even if you start making payments or pay the balance in full. If you negotiate a settlement, it will show up as paid for less than the total amount.

Even though the effects of a negative account will lessen after two years, lenders will still see the account for as long as it is listed on the report. This information may deter them from approving a credit application.

While health insurance can be expensive, so is not having a policy in place if the time comes that you need it. Remember that the decisions you make now can impact your credit rating in the future.

Newest Answers

Credit Card Advice for New Graduates

June 26th, 2017 | Author:

[I]f you’ve recently graduated or plan to this summer, you may be planning to enter the world of being an adult. You’ll get a job, maybe an apartment and car, and probably open a bank account if you don’t already have one. You may also decide to get a credit card with your new income. […]

Continue Reading »

3 Reasons to Start Out a Marriage with Good Credit

June 23rd, 2017 | Author:

[W]ith summer comes plans for weddings, big beautiful bouquets, a gorgeous wedding dress, garden ceremony and many other unique plans. Of course, each of these items cost money, which can add up to thousands of dollars. What many couples fail to plan for as they dream of their wedding is how to start out marriage […]

Continue Reading »

Why the Employed Struggle to Survive

June 21st, 2017 | Author:

[E]ven those with full-time jobs often end up struggling to pay their bills and protect their credit rating. They live paycheck to paycheck with barely enough left over to last until the next payday. With reports of the economy improving and a low unemployment rate, this may not make sense. One theory is that shifting […]

Continue Reading »

How to Save Money on Vacation This Summer

June 19th, 2017 | Author:
h

[P]eople look forward to summertime partially because they have a vacation planned. It’s a chance to get away and take a break from the stresses of life. Unfortunately for those who live on a tight budget, coming back from vacation may be a dose of reality they would just as soon forget. You can imagine […]

Continue Reading »

Financial Steps to Take Before You Graduate

June 16th, 2017 | Author:
h

[I]f you’re about to graduate college and enter the workforce, you want to start out on the right foot. It’s all too easy to get caught up in the idea of a steady paycheck and make some bad financial decisions. Here are a few things you should do about your finances before you graduate. Think […]

Continue Reading »

How to Sell Stuff to Make Money

June 15th, 2017 | Author:
h

[Y]ou have a bill to pay and you don’t have the money. Or your car broke down and you don’t have the extra funds to pay for the repair. One way to come up with cash when you need it is to sell something you own. However, it’s not always as easy as it sounds. […]

Continue Reading »

Have You Become a Financial Adult?

June 9th, 2017 | Author:
h

[A]s a teenager and even college student, you probably had your parents looking out for you. They helped with expenses even if you had a part-time job. Now that you have entered adulthood with a full-time job, you feel like a grownup. But have you grown up financially? You Know How to Budget A person […]

Continue Reading »