Medical collections are without question the most erroneous reported accounts on credit reports. We all personally know how difficult it can be to figure out medical bills and the explanation of benefits we get mailed to us after we have received care. Errors are rampant typically because it is so difficult to decipher the multiple bills that are associated with a single doctor visit. Figuring out what we owe is like learning a foreign language.
The good news is that lenders are now backing off on requiring medical collections to be paid. We recently had an approval for a borrower who had over $20,000 in medical collections.
Important note: medical collections still hurt your credit score and if there are many of them, they could affect your ability to be approved. It is always a good idea to make sure you check your credit report periodically to make sure you do not have any erroneous medical collections on there.