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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