Many Americans are having a lot of trouble meeting their healthcare needs. It is becoming a common trend to see families struggling to repay huge medical debts that threaten to ruin their finances every year.
It now seems like the bad health of your finances does not only affect you but it is also threatening hospitals which are unable to collect payment for the medical services given. To solve this problem, hospitals have come up with a solution to the problem of patients not paying for costly medical care, resulting in billions of uncollected bills. Hospitals have introduced preventative care – for the health of your finances.
What Your Credit Score Says about the Health of Your Finances
Hospitals give the health of your finances preventative care by obtaining your credit score. This is not something new as lenders in the nation use it all the time to decide whether to give credit to customers.
Research shows that hospitals are willing to spend a lot of money to obtain credit scores of their patients so that they can better serve them according to the health of their finances. The credit score helps hospitals to offer the best payment plans for patients. For example, if a patient’s credit score is bad, hospitals have started offering extended payment plans where the patient can pay off the medical debt in several installments.
Some might wonder why hospitals may want to spend money on obtaining credit scores of their patients. However, when we look at how much money hospitals lose to unpaid medical bills, we begin to understand their dilemma. Reports suggest that in 2012, hospitals in the U.S provided $45.9 billion in unpaid care services.
This explains why hospitals would want to reduce the unpaid bills. They can only do this by understanding their patient’s financial situation using credit scores, which will in turn help hospitals offer patients the best payment options and plans. Patients who cannot afford to pay medical bills in full can be offered monthly repayments that suit their budget and this will end up as a win/win situation for all parties involved.
The Downside to hospitals using Credit Scores
Although it is a positive thing for hospitals to want to help patients pay off their medical bills, there are downsides to using credit scores. One situation that many people fear could come as a result of this is where hospitals could start refusing medical care to patients who have low credit scores. Although hospitals have maintained that this is not their intention in using credit scores to check the health of your finances, gaining access to this information may one day lead to that possibility.
We will have to wait and see what hospitals do with information they obtain on the health of your finances, however for now, it is encouraging to see hospitals looking for ways to help patients receive the medical care they require and assist them pay the bills that follow. Patients and hospitals can all benefit from gaining control over the high medical debt.
How to Build Your Credit Score
The best way to take care of both your physical and financial health is preventative care. To better your credit score, there are three tips that you can practice that can guarantee you success:
- Create a plan to pay off your debt. There are no quick fixes here. Paying off debt requires one to come up with a working plan that leads to success. A strategy is very important. If you use most or all credit available to you, then your credit score will suffer. To lower the amount of credit you use requires reducing and paying off your debt. Not meeting the minimum payments on your debt will be a disaster, but paying more than the minimum on your payments will help you pay the debt faster.
- Fix errors on your credit report. Errors on your credit report can harm your credit score if not corrected. Always go through your credit report and any mistakes found should be disputed as soon as you spot them. You may need tenacity as the disputing process can sometimes be a long one.
- Pay all your creditors on time. Credit scores suffer when you pay your debts and bills late. Learn to pay all your bills and debts on time every time. This will guarantee a good credit report which is determined by having a long and positive history of paying all you owe on time.
The health of your finances and your credit score can be made great using many ways. Some are easy and some are hard, but no matter the financial situation you are in, you have the power to take control. If you follow the steps we have given you, you will succeed.