Do Medical Expenses Show Up on Your Credit Score?

It is not possible for medical expenses to show up on your credit score -- although they can appear on your credit report. Credit scores are three-digit numbers ranging from 350 to 850. Computers generate the scores using mathematical formulas. The formulas, also known as credit scoring models, use information on your credit report to predict how likely you are to fall behind on your bills. The lower your credit score, the greater credit risk you are, according to the credit scoring models. Medical expenses appearing on your credit report can cause your score to drop.

Considerations

Credit scores of 720 and higher are excellent, while scores below 620 are poor. A medical expense usually appears on credit reports only if the expense becomes a bad debt because of nonpayment. At that point a debt collector usually lists the expense on credit reports as a "collection account." Creditors consider collection accounts as extremely negative information on a credit report.

Danger

Medical expenses are a leading cause of excessive debt, especially for those without medical insurance. Short hospital stays can cost thousands of dollars, and people without insurance needing lengthy hospital stays are sometimes forced into bankruptcy to manage their medical debt. It is possible for some people to have multiple medical collection accounts on their credit reports because credit bureaus treat each delinquent medical account as a separate entry. A medical collection account for $15 can appear on credit reports, and have the same effect on credit scoring as a collection account for $1,000.

Review

People concerned about medical expenses appearing on their credit report can check for themselves. The Fair Credit Reporting Act -- a federal law -- makes free credit reports available through AnnualCreditReport.com. Three major credit bureaus -- Equifax, Experian and TransUnion -- operate the site. Credit scores are available separately, for a fee, by following instructions available on the free credit report.

Credit Repair

The Federal Trade Commission reports that negative credit information such as medical collection accounts must remain on credit reports for seven years after first reported. However, some debt collectors will delete the information from credit reports in exchange for full payment -- a process known as "pay-for-delete." Not every debt collector will participate because some feel the tactic is not fair to people who pay their debts on time. Removal of a medical collection account could improve a person's credit score.