My Ex Is Using My Credit Cards after Our Divorce!

Unfortunately, divorce almost always brings with it some degree of contention. Regardless of what the former couple disagrees about, it usually comes down to a “he said, she said” type of dispute.

Sometimes, however, there is legal recourse for post-divorce behavior that simply crosses the line. Take, for example, a woman who, upon setting out to clean up her credit report and boost her score, discovered that her former husband had been using her credit cards quite liberally well after they split up.

While, yes, there can be a bit of ambiguity when it comes to using shared cards in the time period after a married couple decides to part but before the Final Judgement of Divorce has been entered, the law speaks loud and clear after the divorce is final.

Any use of your ex-husband or ex-wife’s credit cards (that are in his or her name only) after you divorce is specifically disallowed. In fact, it’s against the law and reeks of identity theft.

Do some married couples use each other’s credit cards while they’re married? They do – even if the credit card in question is not a shared card and only officially “belongs” to one party. This is legal if the non-card-holder is named as an authorized user on the account.

Example: Husband goes out of town for the weekend and leaves his credit card for his wife to use for shopping. As long as she is an authorized user on his account, this is perfectly legal. However, she must sign her own name on any receipts as opposed to forging her husband’s signature.

Even if you’re currently happily married, it is generally considered unwise for you to utilize your spouse’s credit card (that is in his or her name only) if you aren’t listed as a user of the credit card. Some couples do it anyway because most merchants assume that the cardholder gave permission to the spouse to use their card. Simply calling your credit card company and adding your spouse as an authorized user is easy to do and can eliminate any potential problems.

After you are officially divorced from your spouse and are holding the Final Judgement of Divorce in your hands, there should be exactly zero further use of the other party’s credit card. This is true even if you were listed as an authorized user while you were married. Should your spouse forget to remove your name from their authorized users list, this does not in any way mean that you may continue using your ex’s credit after divorce.

An ex-spouse utilizing your credit card falls under the category of a criminal offense: identity theft. It is no different than a complete stranger stealing and using your credit card(s). If this has happened to you, the next step you should take is filing a police report and sending a copy of the police report to the credit reporting agencies. Working with a credit repair specialist will help you get the debt removed from your card and you may even be successful in making your ex pay for the charges.

Are You Committing Financial Child Abuse?

Although it may be something you’ve never considered, there have been many reports of what is now being called “financial child abuse.” One of the easiest ways to commit financial child abuse is to use your child’s Social Security number instead of your own.

Why would anyone use their child’s Social Security number?

Typically, the perpetrator has found himself with a significant amount of debt that may include wage garnishment. What this means is that any time the adult in question attempts to get a job, his debts follow him and his creditors will be able to take a portion of his paycheck.

Because of this, the adult decides to use his child’s Social Security number when applying for a new job. Oftentimes, the father and the child in question have the same name, making this kind of activity slightly more difficult to detect by law enforcement.

Is it a crime to use your child’s Social Security number?

Not only is it illegal, but to do so would be committing a number of serious crimes including:

  • Identity theft
  • Fraud
  • Tax fraud
  • Social Security fraud
  • Theft

These crimes will almost certainly prevent the adult in question from ever discharging any of his debts in a bankruptcy in the future, and in addition, he may face prison time and thousands of dollars in fines.

Why is it a crime? Who is it really hurting?

The reason it is a crime to use a child’s Social Security number to obtain employment or a loan, etc. is because regardless of whose Social Security number is being “borrowed,” it is illegal to do so. End of story. A Social Security number is not something that can be borrowed, shared, or changed.

It can affect the child in question by tacking on Social Security wages to his SSN that he may have to answer for later in life if the activity is not stopped and reversed. This can cause the child serious legal problems involving Social Security fraud, even though he had no knowledge of the crime being carried out.

What is a better solution to my debt-related problems?

It is always a good idea to avoid committing a crime in order to get out of paying your debts. The reasons? You’re going to end up getting in serious trouble, you may go to jail, you will owe more money in the end, you will cause conflict within your family, and most importantly: There is a better solution!

You can erase the debts that you have. You do not have to borrow someone else’s Social Security number to get around your creditors. It is understandable and admirable that you want to get a job to support your family. Just don’t resort to committing a crime that you will regret later in order to do so.

Filing for NJ bankruptcy will wipe out most or all of the debts that you have racked up (with some exclusions) – allowing you to have a relatively clean credit report and no debts that will be taken from your wages.

Will a bankruptcy appear on my credit report?

It is impossible to avoid a bankruptcy showing up on your credit history, however, taking the responsibility for your debts and doing the right thing is viewed much more favorably by employers and lenders. You will have a much easier time getting a job with a bankruptcy on your record than if you had been convicted of fraud and identity theft.

The bankruptcy will disappear off of your credit report within seven to ten years depending on which chapter you file. Committing a crime like identity theft or Social Security fraud will remain on your criminal history record for the rest of your life. Which sounds more desirable to you? Do the right thing – file for bankruptcy and get rid of your debts so that you can move forward with getting that job and supporting your family the right way.

Fixing Your Credit to be Pre-Approved for a Mortgage Loan

If your credit score is very low (under 500), you may feel like you’ll never be approved for a mortgage. Owning your own home is a life-long dream for so many people, and luckily, it’s not one that you have to give up. You will, however, have some work to do before you will be granted a mortgage loan.

Anyone who is looking to buy a house in the relatively near future should take a good look at their credit report(s). The higher your credit score is when you’re approved, the better your mortgage rate will be. This can save you hundreds of dollars on your monthly mortgage payment. First, request a copy of your most recent reports from each of the three main credit reporting bureaus: Equifax, Experian and TransUnion.

As an aside, it’s wise to take a look at your credit report once a year on a regular schedule even if you’re not in the home-buying market.

Once you have a copy of your credit reports, the first thing on your agenda should be scanning it with a fine-tooth comb to check for any errors. This is the easiest way to give your credit score a quick boost.

If you find any errors (debts that are being reported incorrectly, satisfied debts that continue to show up as unpaid, payments marked as late when you paid on time), filing a dispute with the agency whose report contains the error(s) is the next step. Working with a New Jersey credit repair attorney is a good idea if you have errors and a lot of negative marks on your credit report. Your attorney will negotiate with your creditors, requesting forgiveness for lesser offenses like late payments. This “goodwill letter” is frequently an effective approach to jump-starting your credit repair process.

Once you’re sure that any errors have been appropriately dealt with, the following behaviors will give your credit score further boosts to get it up to your “goal range.” Your NJ credit repair attorney will know how much your score needs to increase in order for you to get pre-approved for a mortgage loan.

Make your monthly bill payments early

Even better, if you can make an extra payment each month on your credit cards with the highest balances, you’ll be able to zap your debts faster.

Create a debt resolution plan

In addition to making more than one payment per month, create a plan to pay down all of your existing debt until it’s gone. The lower your credit utilization ratio, the better.

Raise your credit limits

Related to lowering your credit utilization ratio, you can also request a higher credit limit on one or two of your credit cards. Be careful with this tip, though, and only do this if you have the self-control to keep yourself from charging even more purchases.

Consolidate

If you have more than one card with the same lender, keeping your oldest card active and transferring balances from newer cards (and then closing the newer cards), the overall age of your debt will be older, which looks good to credit bureaus.

If you are diligent about reigning in your spending, paying all of your bills early or on time, and taking the steps listed above, it is possible to boost your credit score 50-100 points in six months to one year. Your results will be dependent on your starting credit score and the type and number of dings currently on your credit report.

Before you know it, you’ll be walking out of your lender’s office with a mortgage pre-approval letter!

Do You Understand Your Mortgage’s Fine Print?

Now that the housing/mortgage crisis has begun to level out in most parts of the country, it has once again become a buyer’s market, and this time in a much more reasonable manner. Interest rates are good, but not unbelievably good like they were leading up to the 2007 crisis. As we all know by now: if something seems too good to be true, it probably is.

Just because we’re looking at the US Financial Crisis (2007-2008) in the rear view mirror doesn’t mean that getting a mortgage loan today comes without risks, though. In fact, there is a lot to be learned from the mistakes made a decade ago.

In order to ensure that you aren’t getting yourself into something you can’t handle or something that will change over time (and not in your favor) – you simply MUST have a complete and solid understanding of everything contained in your mortgage agreement.

To most people, this probably sounds like common sense. But have you ever looked at a real, live mortgage agreement? They are very lengthy with a lot of industry jargon that can quickly spin you into a confused puddle on the floor.

Your best bet is to find a New Jersey lawyer with real estate knowledge. Make sure you trust him and his team implicitly – in all likelihood a paralegal may also work with you on real estate matters, so be sure to meet everyone in the office who will be helping you understand your documents.

Questions to have ready for your attorney and/or paralegal include:

  • Is my rate variable or fixed? If the answer is variable, find out the lowest fixed rate that you’ll be able to lock in your loan.
  • Will there be penalties if I have to break my mortgage contract?
  • Am I required to pay mortgage insurance? If so, find out why. You may be able to work with a different lender who will not require mortgage insurance. If mortgage insurance is non-negotiable, be sure to ask how long you’ll be paying it, because it can often be a significant sum.
  • How long does my mortgage loan last? Will different terms lower my monthly payment?
  • What fees am I required to pay up front and are there any fees that were tossed into the total loan amount?
  • Do I have a balloon payment clause?
  • What are mortgage “points?”
  • Is a down payment required?
  • What is my monthly payment?
  • What is my credit score? We left this question until the end for a reason. We wanted to leave you with it on your mind. Finding out your credit score should be one of the first things you do even before you begin applying for mortgage pre-approval.

Your credit score will have a significant impact on the interest rate you will be offered by lenders. If your score is less than desirable, or even “fair”, talk to your NJ real estate attorney and paralegal about waiting to buy a home until you can boost your score into the “good” or “excellent” range. Work with your trusted legal team to raise your credit score. They will also be able to guide you in determining the best time to jump into the real estate market so that you qualify for the best loan options. This will save you a lot of money throughout the length of your mortgage.

 

 

Images: “Chocolates 1” and “Chocolates 2” by Windell Oskay – licensed under CC 2.0

5 Expert Recommended Methods to Raise Your Credit Score

If you are researching how to raise your credit score, regardless of the reason, we give you major kudos. Perhaps you are trying to repair a credit report that was damaged due to years of poor financial choices. On the other hand, maybe your credit score is fair and you’re getting ready to make a big change in your life that will be much easier with good to excellent credit, like buying a new house or starting a family.

You should always strive to have the best credit score possible, but many people experience dips in their credit score just as we experience ups and downs in life. Such is the nature of the beast. In order to raise your credit score effectively, we’ve gathered some expert-recommended tips that can make a significant difference in your overall credit report and number.

Before making any changes, you’ll want to make sure you pull your own credit report and have a good look over everything listed on it. Comb through each credit report from the three main credit reporting bureaus (Equifax, Experian, and TransUnion) very carefully to check for any mistakes that may have been made like debt that is being reported that doesn’t actually belong to you.

You can contact the reporting agency about any errors on your own or you can work with a New Jersey credit repair attorney to help you make the contact and clear up any errors that may be unnecessarily dragging your credit score down.

After you have determined that there are no errors currently weighing down your score, take the following expert-recommended steps to boost your score higher than ever before:

Pay monthly credit card bills before their closing dates

Even if you are managing to pay your credit card bills in full each month, you may be paying after your lender has already reported your balance to the credit bureaus. This will make it seem that your balance is high every month. What you must do is contact your credit card company or lender and ask when they make their monthly credit bureau reports. Henceforth, make your monthly payment well in advance of that credit card company’s closing date so that your balance will be reported to the bureaus as zero.

Create a debt paydown strategy

In order to optimize your credit utilization ratio (which means keeping it lower than 30% but optimally under 10%), work hard to pay down the balances on your card(s) that have the highest balances first.

Pay your debts every time you get paid

Most people pay their bills once a month, but there is a better way! Since it is common practice for most employers in the US to pay their workers on a biweekly basis, make it your new practice to make two payments on your credit card debt per month. Pay your monthly minimum as soon as you receive your first paycheck of the month, and then pay a little bit more with your second paycheck of the month. This will nudge your balance down much more quickly than only making one payment per month.

Lower your credit utilization ratio by requesting a higher credit limit

Although this is something that should not be attempted if you don’t trust yourself to stay within your own self-imposed spending limits, requesting a higher credit limit from your credit card company can lower your overall credit utilization ratio. Naturally, this will only work as long as you refrain from racking up anymore debt.

Consolidate multiple credit cards from the same issuer

With the ultimate goal of keeping your total credit limit the same, if you have more than one credit card with the same institution, consider requesting a consolidation of those cards. The goal of this is to increase the average age of your overall revolving credit, so request that your newer card be combined into the older card. This will eventually eliminate that newer card from your credit history and your debt will have an older overall age, which will help improve your credit score.

 

Image: “5” by Steve Bowbrick – licensed under CC by 2.0

Am I Responsible for the Ambulance Fee if I Refused Transport?

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The cost of being transported to a local hospital via ambulance can make anyone’s jaw drop. Even a short, one block drive wherein they provided no EMT assistance can easily be billed at $750+. While it’s true that most insurance companies do cover ambulance transport, high deductibles and lack of adequate insurance coverage often leave patients responsible for the full amount.

Imagine the following scenario: You were involved in a minor accident, whether automobile or otherwise. Finding yourself either without injury or having sustained only minor injuries, you decide to make your way to the hospital on your own. Bystanders, other drivers, or security personnel who witnessed your accident, however, may have deemed it necessary to call 911 on your behalf. What happens, then, when you’re surprised by the arrival of a bleating ambulance that you feel you never even needed?

Many patients have reported being informed that they could not refuse transport via ambulance in NJ. One man was essentially strapped down against his will (he had a broken arm and was unable to resist) and driven to the hospital. The drive took 2 minutes, and no treatment was given throughout his ride in the ambulance other than stabilization of his arm. A week later, the man in this scenario was billed almost $1000 for the ambulance service.

Another scenario played out like this: After a minor fall at work, a woman found herself with a minor abrasion on her leg. It was a surface abrasion, and she had it cleaned and bandaged by her company’s in-house nurse. A security officer witnessed the accident (it was a minor trip and fall that the patient acknowledges was no one’s fault but her own) and called 911. The woman was already back at her desk working when she was surprised by the arrival of an ambulance. She refused transport, but it wasn’t easy to convince the emergency medical team members that she did not need treatment. They eventually left without her, but she too received a bill for an ambulance ride that she never even took.

Who is responsible in these (and similar) scenarios? Finding yourself with a hefty medical bill that you can’t afford can be overwhelming – but what should you do if you feel that you’re not even responsible for the bill?

In every situation where you’re faced with a medical bill that either isn’t covered by your insurance, or is still more than you can afford even with insurance coverage – the best course of action is to negotiate. Almost every medical bill can be negotiated, either before treatment occurs, or after it has been administered, and this includes ambulance transportation.

If you don’t want to deal with a huge hassle and you did actually receive transport via emergency vehicle, you can call the provider and tell them what you can afford to pay. Many times, you will find that they are happy to receive at least a portion of the billed amount. They may also work with you to set up a payment plan so that you can pay the bill off in installments.

However, if you refused emergency transportation altogether and are still being aggressively billed (with no sign of them backing down), you should schedule a free consult with a New Jersey debt resolution attorney. If you decide to retain their services, you will very likely pay the attorney much less than you would have paid the ambulance service, and you will have the satisfaction of not paying for something that you didn’t receive. Additionally, taking proactive steps to resolve the matter will prevent the ambulance bill from dinging your credit report.

Image credit: Lauren Siegert

Evicted with No Lease in NJ: Will it Damage My Credit?

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If you’re a renter in New Jersey, you may have signed a long and detailed lease with your landlord. Rental leases are used to set out specific terms that must be adhered to by the tenant(s) as well as the landlord (property owner). Signing a lease can give renters the security of a guaranteed place to live for a specified length of time. A lease also stipulates the amount of monthly rent to be paid to the property owner throughout the duration of the contract.

Can I move in with my friend without signing his lease?

Oftentimes, a rental lease specifies whether or not the tenant may take on a roommate during their stay in the rental property. Some leases require that any new roommates sign their name to the lease; however it is more commonly found that tenants can obtain a roommate without having them sign anything.

If you are a roommate who has been living in a rental without having signed any lease paperwork, you may have questions about your rights. Since the original tenant signed the lease, he or she has a clear understanding of their renter’s rights. Although you don’t have the benefit of a written lease, since you are renting in New Jersey, you have what is known as a verbal lease.

Non-leased renters in NJ who are staying in a rental unit with the permission of the property owner are granted an automatic 30-day verbal lease. The oral agreement you and the original tenant formulate with your landlord constitute the contents of your verbal lease. Naturally, verbal leases are much more difficult to uphold, and tend to be quite problematic.

It is recommended that you get some kind of written agreement from your landlord so that you don’t end up in court over what may very well be an inconsequential issue. Landlord/tenant disputes can turn into bitter court battles, and without anything in writing, you’ll have a much harder time defending yourself and your position as a non-leased renter.

Can a landlord evict a tenant who doesn’t have a written lease?

Property owners can definitely evict tenants without a written lease in place, but the process is a lot messier for all parties involved. Whether you moved in with a leased renter or if you were simply granted verbal permission to stay in a property with no lease, you are not safe from eviction.

There are a myriad of reasons that justify evicting a renter of any kind, including:

  • Violation of health, safety or conduct laws
  • Damaged property
  • Missed or habitually late rent payment(s)
  • Illegal activity (drug use, assault) in the rental property
  • Theft or destruction of landlord’s property
  • Disturbing the peace
  • Decision of property owner to stop renting

Even if you did not sign a written lease, you can be evicted for any of the above reasons.

Will an eviction damage my credit score?

Generally, being evicted in New Jersey will not be indicated on your credit report. However, unpaid rent or lawsuits that were filed against you by the landlord may show up on your credit history. Additionally, the next time you apply to rent an apartment in NJ or elsewhere, your new landlord or property manager is likely to perform a background screening, during which they may discover that you’ve been evicted before.

Image credit: Angela Rutherford

Building a Good Credit Rating When You Have No Credit History

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For those people who are dealing with a sub-par or super-low credit score, there is an abundance of good advice available regarding how to improve a poor credit rating. From debt negotiation to loan refinancing, New Jersey credit repair attorneys are able to help their struggling clients watch their scores go up, up, up!

Obviously, on the other end of the spectrum are those people who’ve (almost) always made sound financial decisions, haven’t experienced any major catastrophes, and therefore have great credit scores with glowing credit reports. They obviously don’t need help in this arena.

There’s a much less talked about gray area of the credit spectrum, though, where some young people are finding themselves stuck. These people are generally either in their late teens to early 20s, or they’ve been living at home with their parents and may be approaching their mid-20s or even 30.

What does it mean to have “NO credit history”?

While the terms “bad credit and zero credit history” can often be confused, the two situations are entirely different and it’s important to know your options if you’re in the zero credit history category.

A bad (or low) credit score suggests that you have made some significant missteps in your financial history. This means you may have: had a number of late payments on any of your expenses, racked up too much credit card debt, co-signed a loan that defaulted, defaulted on a loan of your own, recently applied for a number of new loans, closed credit accounts that you don’t use (which lowers your credit utilization ratio), had your home foreclosed, or filed for NJ bankruptcy.

As someone with zero credit history, you’ll face similar problems as those with low credit scores when it comes to getting a loan, credit card, buying a car, purchasing a home, and sometimes even renting an apartment.

Having no credit history, however, is generally much easier to “fix” than having a bad credit history. That’s because you haven’t necessarily made any bad money choices – you just haven’t appeared on the credit system’s radar yet. You don’t have any credit cards, you’ve never applied for a loan or financed a vehicle. When performing a search for your credit history, lenders will simply come back with….nothing. Zero. Zilch.

Does zero credit history mean my score starts at 300?

Just because you have no credit history doesn’t mean you have to start at the bottom of the credit rating scale, which ranges from 300 – 850. Your credit worthiness will be given a score, but not until you have engaged in some activities that can be “rated.”

It can be frustrating when you have no credit history because, although you don’t have a bad credit score, creditors still can’t tell much about your credit worthiness. They don’t know if they can trust you to pay back money or not. Because of this, getting your credit history rolling can be tricky.

Naturally, everyone had to start with no credit history, so building a good credit score from your vantage point is definitely doable. Because lenders will be wary of you at first, you’ll need to start with baby steps.

What kind of credit will I be able to get?

Although you won’t be able to apply for a high limit credit card or a home mortgage right off the bat, there are low-risk ways for you to build a credit history. Start by asking your bank if you can apply for their secured credit card. If you’ve been banking with them for awhile, they’ll be more likely to approve you since they at least know your banking habits. For those who’ve never had a bank account, your first step will be opening a checking account. Do some research first so that you’re sure to open an account with a bank that offers a secured credit card.

It may be possible for you to receive a slightly larger loan, like a used car loan, but you may have to ask a parent or close friend (with good credit) to cosign the loan with you. Most importantly, no matter what your first loan is, you must be sure to make your monthly payments on time. Eventually your responsibility will pay off and your credit score will rise.

At first, your score will not start at the bottom (300) of the scale, nor will it skyrocket to the top (850) simply because you make a few timely payments. However, as soon as you are granted a loan and begin making payments, your credit history will no longer be a giant blank space. Your score is likely to start off somewhere in the middle of the range, and will only continue to rise as you demonstrate credit worthiness.

Namesake Credit Mix-ups and How to Repair the Damage

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Although not as common as it once was, naming baby boys after their fathers is still a custom that is practiced in this country. Proud fathers naturally want to continue a family tradition that may have existed for centuries. In fact, some women also choose to name their daughters after themselves, however this is a much less common occurrence.

Aside from the cultural aspects that are intertwined with baby naming practices, giving your child the same name as one of his/her parents may be setting them up for a lifetime of headaches.

In addition to everyday confusion related to which person is being referred to (Are you talking about Big John or Little John, Junior?), sharing an identical (or nearly so) name can lead to financial mix-ups that are much more inconvenient.

Especially as the child grows into an adult and begins to acquire his own assets and credit rating, it’s unfortunately common for fathers and sons with the same name to have some co-mingling of their credit information.

How does this happen?

As much as we’d love to think that every financial institution and lender is doing their due diligence when processing loan applications and other important identifying documents, mistakes are made every day. Incomplete information leads employees to fill in the blanks of their own accord, which is where the errors begin.

Employees who are unfamiliar with the people involved are often on the paper-pushing end of financial transactions like loans. Given the task of ensuring that all documents are complete, these employees may have to search for a person’s social security number, for example. In a situation where a father and son share the same name (and suffixes have been dropped), matching up the wrong social security number is an easy mistake.

Will I have to change my name to fix my credit?

Although it may help in your future financial endeavors, changing your name won’t do anything for the errors that already exist in your credit report. You’ll need to be in close contact with all of the credit bureaus to dispute every instance of the wrong identity being used. As long as you follow through with your dispute(s), you should be able to have all of the incorrect information removed, which will improve your score if it was negatively affected.

In order to prevent this from becoming a never-ending problem that keeps coming back to bite you, take the following steps:

  • Always provide your social security number and give complete information when filling out any type of financial documentation, especially loan applications.
  • Sit down with your father (or other person with whom you share a name) in order to educate him about the situation at hand. Encourage him to fill out applications in full as well.
  • Be consistent with the name that you use on applications. If your name contains a suffix, like Jr., Sr., or III, use it without fail when you apply for anything. If you have always used a nickname, continue using the same name for all financial transactions into the future. Consistency is the key.
  • Check your credit report annually for any new errors that may pop up, and deal with them promptly to avoid serious consequences to your credit score.

 

Image credit: Francisco Osorio

Late Payments: Will They Affect my Credit Score?

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By now, you probably understand that failure to make good on your debts will definitely be reflected in your credit report and score. Regardless of your reason, leaving debts unpaid opens you up to numerous marks on your credit report, which will in turn drag your score down, down, down – until the debts are paid.

So, not paying your debts equals a low credit score, but what happens when you do pay, but you pay late?

Will late payments be reflected on my credit report?

The best answer here is “it depends.” If you make one or two utility payments that are only late by a few days, they probably won’t show up on your credit report. (But they might! Much depends on the company’s policies and the individual in charge of receiving payments for that company.)

Many times, medical debt causes significant headaches for consumers. Usually the headaches are caused by dealing with insurance companies. Insurance companies are notoriously bad at responding to claims in a reasonable time frame, which leads to red marks on your credit report. Often, codes are submitted incorrectly or multiple insurance policies are not properly coordinated. Further, some claims are initially denied but may be approved if resubmitted through the proper channels.

The bottom line regarding medical debt is that human error combined with strict and sometimes questionable policy rules lead to long wait times for some claims to be paid by insurance companies.

Why is my medical debt marked “Late” on my credit report if it is the insurance company’s fault?

This question comes up often, and the unfortunate reality is that creditors, even hospitals, doctors’ offices and other medical providers, do not care who pays their bill as long as it gets paid. Most providers do realize that there may be a slight delay for payment due to the intricacies of the insurance industry, however, they are not willing to wait for an extended period of time.

Patients who are waiting for their insurance company to pay their medical bill(s) are often surprised to find negative marks on their credit report because they don’t understand that if there is a delay on the insurance company’s side, medical providers expect the patient to pay the bill and then be reimbursed by the insurance company.

If you’ve recently discovered that some of your paid medical debt has been marked as “Late” on your credit report, you may wonder if you can get your provider to remove the “Late” status now that they’ve received payment. Unfortunately they don’t have to and typically won’t remove the “Late” mark from your report because doing so takes up more of their valuable time.

Additionally, if your medical debt was in fact paid late then it is accurately denoted on your credit report. The fact that it is marked as “Paid” is important (even if marked “Paid Late”), and you can add a note to the entry so that future creditors know precisely why it was paid late. If, however, your medical debt was paid and your credit report does not reflect payment at all, then you have a right to have the information changed.

Image credit: NursingSchoolsNearMe