Credit Score

4 Replies


This is kind of an embarrassing post, but I need to know how to take care of this and I thought this community would be best.

I have a low credit score because I had a medical bill that I didn't know about until we applied for a mortgage.  By then it was too late to get rid of the ding.  I paid the bill right away.

So, as I understand it, there are the following parties involved:

- Hospital

- Collection Agency

- Credit Score company

So, my loan broker worked with me to try to get the credit score back up before we got the mortgage, but we didn't get the score back up in time.  So my MI is higher than it would be if I had my old credit score, which was pretty good (mid 700's). 

I can ReFi in 6 months.  I closed on the house on Dec 12th.

From what I understand, either the hospital or the collection agency put in a request to remove my credit score reduction.  Also from what I understand, this will happen eventually, but the actual amount of time is unknown.  

My question:

How do I follow up?  How can I be sure that in 6 months my credit is back to pre-medical bill status?  The collection agency told me that this particular hospital always puts in a request to remove the credit reduction.  

Who do I contact?  The hospital?  Anyone in particular at the hospital?  Once they put the request in, then who do I call to follow up?

Thanks for putting up with the potentially dumb questions.  


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Who did you pay, the hospital or the Collection Agency. I would start with the one you paid. Make the request to have the item removed in writing. Always in writing. If you speak with someone that tells you verbally, have them follow it up in writing. For future reference, negotiate the removal before you pay, and get that in writing.

Once the item is removed (usually 1-2 billing cycles), your credit score should improve dramatically, assuming this was the only ding. I would recommend a credit monitoring subscription so you can check your report and look for any other errors, and then immediately see when items are corrected.

The process would look something like this:

1. Who did you end up ultimately paying ? Get a receipt or statement from them showing proof.

2. Contact the three major bureuas dispute departments with a letter which includes the receipt.

If you have additional questions please reach out to me directly.

Everything was taken care of and I am re-financing the house soon (will be about 7 months after first mortgage payment). With the rehab and house prices going up, I'm hoping to remove the rest of my down payment (10% left to remove my PMI). My credit score is back up again. Looks like I could save around $100 - $125 / month.

A small lesson learned, for those who didn't know (I didn't):

With a given amount of CC debt, it is better for the debt to be on a card with a higher limit than a lower limit for your credit score. 

I don't ever carry debt, but the house rehab (and other unrelated life things) gave a month or two of carrying debt.  The report showed a flag since I accumulated debt on the card with the lower limit (but with points).  I guess the credit score companies are basically saying that you are in 'more' debt because you are closer to the limit.  I would have scored better had I been using my other CC with a higher limit.

It doubt it made much of a difference, probably only a few points.  Anyway, lesson learned.  

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