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

Ways to Save Money and Improve Your Credit

March 22nd, 2017 | Author:
h

[I]f you made a resolution this year to pay off debt and improve your credit, you may find you have a challenge. For some, getting a second job is the best way to accomplish this goal because it provides extra income. If this isn’t an option, you can focus instead of saving money to give […]

Continue Reading »

Are Home Warranties Worth the Cost?

March 20th, 2017 | Author:
h

[I]f you have bought a home recently, are in the process or plan to in the future, one of the options you may have is to purchase a home warranty. However, you will have to decide if having a warranty is worth the initial cost. What is a Home Warranty? A home warranty covers your […]

Continue Reading »

How Not Having Health Insurance Can Damage Your Credit

March 17th, 2017 | Author:
h

[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 […]

Continue Reading »

Creative Ways to Earn More Money and Pay Off Debt

March 15th, 2017 | Author:
h

[I]f you already work a second job or have kids and no option to take on part-time work, you may wonder how you will ever be able to pay off debt and improve your credit rating. Fortunately, there are ways you can earn money even when you don’t have time to fit in another job. […]

Continue Reading »

Can Your Toys Steal Your Identity?

March 13th, 2017 | Author:
h

[T]he My Friend Cayla is a doll that has been making the news in a bad way. In fact, some advocate that parents get rid of the doll that has been banned in Germany. This interactive toy connects to the internet to talk with your child, answer questions and just be a lot more fun […]

Continue Reading »

3 ideas to Help You Pay Down Debt without a Second Job

March 10th, 2017 | Author:
h

[D]ebt is something most people have but very few want. Credit card debt and medical bills are especially detrimental to a person’s life and credit rating. For many, they take on a second job and devote the income to paying off debt. However, if this isn’t an option for you, there are still ways you […]

Continue Reading »

How to Change Your Spending Habits

March 8th, 2017 | Author:
h

[M]ost people who spend too much know it. They run into the store for paper towels or a gallon of milk and come back with two or three bags of stuff. Every time they sit down to pay the bills and see they don’t have enough money to cover expenses, they promise never to splurge […]

Continue Reading »