I have a large hospital bill that has been sent to a lawyer's office for collection

Quoting Rp
Dear Bo Majors,
I really don't know who to ask this question to so in searching the web I found you! I have a large hospital bill that has been sent to a lawyer's office for collection. The lawyer's office called and said if I don't put in on my credit card they will report it as delinquent and send it to the credit bureau. I have always had excellent credit with never a mark on it. I don't
want to put such a large amount on my card. I am unfortunate in that I have inadequate health insurance and needed an operation last year. I now pay 6 different bills associated with this procedure the hospital being one of them. I pay everyone a little something every month and that seemed to satisfy them all except the hospital. Exactly how bad is it to have a large hospital bill show up on your credit report that shows a person paying something every month? Everything else on my report shows either on-going
current, never late, or account closed. Would a potential loan officer hold this against me or take it all into consideration?
Thanks so much for any advice you can give
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It will lower your score for sure if it goes on your report.
Loan officers for low interest or primary lending companies use the score as the sole basis for granting credit.
Some local high interest finance companies will more than likely look over some collections. You say large amount. If the amount is very large it could dramatically affect your future plans regarding loans, credit cards and even insurance rates.
Credit cards have fine print that allows them to raise rates for just about any reason i the fine print section of your application and approval letter.
One of the reason is a lower credit score. Having a large collection could prompt the credit card folks to raise your rate.
Seems to me like there are no easy answers. I sincerely doubt whoever called you is a lawyer or a law firm. They use the term to frighten people to make quick decisions.
Another point to look at is if a creditor accepts a reduced payment and not the full amount in a court of law they have let you off the hook and cannot legally gain a judgement based on the fact they took a payment structure rather than paid in full. This very element comes into play at the rental company that is affiliated with russell barnett. If a person runs up a rental bill and doesn't pay in full my friend takes them to court for theft by diversion and wins a judgement. So having said all that i have no idea how to adise you. I have given facts only pertaing to your question. It would be soley up to you how to handle this affair.
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