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A hospitalization or medical treatment can carry a price tag that packs a serious punch. If you’re unable to deal with those costs and leave the resulting bill unpaid, insult can get added to injury in the form of damage to your credit score.

That’s because once a medical bill becomes delinquent, many hospitals and individual medical providers will send it to collections. Even though unpaid medical bills might affect your credit report, there are steps to take to potentially lessen the impact.

Do Medical Bills Hurt Your Credit?

Unpaid doctor or hospital bills typically don’t automatically hurt your credit score. Because most health care providers do not report to the credit bureaus, medical debt would have to get sent to collections in order to eventually appear on your credit report and have a potential effect on your credit score. The point at which medical providers will sell the debt to a collection agency is after it’s 60, 90, or 120 past due, depending on the provider.

After that, the three credit bureaus — Experian, Equifax, and TransUnion — have set a one-year waiting period from the time the bill is sent to collections until the medical debt is included on a consumer’s credit report. This is intended to make sure there’s enough time to solve any disputes with insurers and allow for delays in payment.

Further, the three major credit bureaus will soon no longer include unpaid medical bills in collections on a person’s credit report if the amount owed is less than $500. And in even better news, medical debt that was in collections but is now paid off will no longer be included on your credit report (usually, collections accounts take seven years to drop off a report).

On top of all that, some scoring models don’t weigh medical debt as heavily as they do other types of debt when calculating credit scores. In fact, some models may exclude unpaid medical debt entirely. So while medical bills can affect your credit, the effect might not be as drastic as other types of unpaid debt.

Can Medical Bills Be Removed From My Credit Report?

Unlike other types of debt, medical collections debt will no longer appear on your credit report once it is paid. Unpaid medical debt, however, can appear on your credit report for up to seven years if it remains unpaid. Fortunately, as time goes by, the account in collections counts less toward your credit scores.

If your bill was sent to collections by mistake, you may be able to have it removed by proving the error. Collect as much evidence as you can to make your case, such as credit card or checking account statements. You also might ask for payment records from your medical provider’s billing office.

You can file a dispute with the credit bureau that’s reporting the error. The credit bureau will then investigate and respond to you within 30 days. You may also receive email updates from the credit bureau regarding the status of your dispute.

Does Paying Off Medical Collections Improve Credit?

If you pay off medical collections debt, it will get removed from your credit report, which will have a positive impact on your credit score, and potentially a significant one. This is a recent change — previously, paid medical collections debt remained on credit reports for up to seven years.

One option to explore if you’re seeking to pay off your medical collections debt and thus get it removed from your credit report is to get your health insurance company to pay the debt. If you have reason to believe your insurance company should have paid a medical bill, ask your insurer to reconsider your insurance claims.

What to Do if You Can’t Pay Your Medical Bills

If the balance on your medical bill is your financial responsibility, but you’re unable to pay it, there may be ways to relieve your medical debt. Here are some options to consider:

•   Ask the medical provider to set up a payment plan. Discuss this option with your medical provider to find a plan that is manageable with your monthly budget.

•   Review your explanation of benefits the insurance company provides. Look out for billing errors or consider negotiating some of the medical charges, both of which could lower the total amount due.

•   Consider getting a temporary part-time job. This may help bring in extra income that you can put toward the medical debt.

•   Get assistance from a patient advocate. This might be an option worth considering if you can’t get the provider to budge on the payment.

•   Apply for a personal loan. Medical debt is one of the common uses for personal loans. If you can secure a personal loan that has a lower interest rate than credit cards, this may offer another option for payment. Note that your approval and the interest rate you’re offered on the loan will depend on your credit record and other factors — here are some tips to get your personal loan approved.

Being Proactive About Medical Bills

Just because you made your copay at the doctor’s office doesn’t necessarily mean the bill is settled. Additionally, the fact that the provider has billed your insurance company doesn’t automatically mean the amount will be accurate or even paid.

If you haven’t received a statement from your medical provider’s billing office within a few weeks of your appointment or hospital stay, it might be a good idea to call for a billing update. Catching errors early in the billing process can help keep medical bills off your credit report and in turn, prevent medical bills from affecting your credit score.

If you know ahead of time that you won’t be able to pay the entire amount owed, contacting the provider’s billing office and trying to negotiate a payment plan may be a good first step. If you can come to an agreement, it’s a good idea to get it in writing. If you can’t reach an agreement, start exploring other options, making sure to weigh the pros and cons and crunch the numbers, such as with a personal loan calculator.

Should a collection agency employee contact you about a bill that you think has been paid or should have been paid by insurance, stay calm. Ask if you can call back with information that shows there’s no open balance.

The Takeaway

If you have unpaid medical bills on your credit report, focusing on getting them paid has the potential to make a real difference in your financial future. Staying on top of medical bills can mean extra vigilance, but the effort is worth it to keep medical debt from affecting your credit.

If paying your medical bills with a personal loan makes sense for your financial situation, a medical loan from SoFi might be right for you. An unsecured SoFi personal loan can be used for medical bills, in addition to other expenses, and has no fees required, competitive interest rates, and a variety of repayment terms to work with different budgets.

Check your rate on a medical loan from SoFi.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

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You’re engaged and ready to plan your wedding. Along with plenty of excitement about your big day, you might also start to feel some sticker shock as you research prices for the ceremony and reception.

SoFi’s most recent survey found that the median price of a wedding is $10,000, and a large portion of that typically goes toward the reception venue.

The average cost of a wedding is $30,000, according to a recent survey of couples.

Fortunately, there are a number of ways to save for the wedding of your dreams. Reducing the costs of the venue helps with one of the largest expenses.

There are free wedding venues, as well as relatively inexpensive wedding venues to consider as you’re creating your budget. Below are four affordable places to hold a wedding. By selecting one of them, and adding some unique personal touches, you can make the day truly your own.

Plus, if you discover that you could use help financing your wedding, we have suggestions for that, too.

Recommended: Wedding Cost Calculator With Examples

At-Home Wedding

This could be at your own home, or that of a parent, friend, or other loved one, which will likely be one of the most affordable wedding venues around. Benefits of this choice (besides the lack of rental fees) include the flexibility to have your ceremony on just about any day of the year, plus you have a ready-made shelter if the weather isn’t ideal. Want a pet-friendly ceremony? It doesn’t get any better than a home wedding for having your beloved dog be your ring bearer.

Also, any home upgrades made for the ceremony can be enjoyed for a long time afterward. Just decide how much of the event will be held outdoors, what rooms of the house should be made available to wedding guests, and how to ensure enough seating.

You can keep it simple by focusing on certain aspects for home improvement. For instance, if you envision yourself making a grand entrance by walking down a staircase in your wedding dress, you might think about a staircase remodel for your ceremony.

On the other hand, if your powder room could use a glow-up, you might want to concentrate your efforts there for a beautiful bathroom refresh. As a bonus, a project like this could add value to your home.

Check to be sure your officiant of choice is able to perform the ceremony, plan the parking logistics, find out how to comply with any noise ordinances, and so forth. Also, this could be a perfect time to do some outdoor landscaping that will beautify your special day and your home for years to come.

City Hall Wedding

A city hall wedding can be a very chic choice. You aren’t restricted to the city hall or courthouse by where you currently live. You could choose one that has special significance to your relationship, perhaps the city where you first fell in love.

Or, you can get married in the city hall where you’ll enjoy your honeymoon or your family vacation. As another strategy, you can choose the city hall based on its beauty. For instance, the city hall in San Francisco has a stunning white column and gold-capped roof.

The fee for a city hall wedding varies by state and municipality. Generally, it ranges from $30 to $88 or more. Call the location to learn the exact cost.

There are usually designated days and times for city hall weddings, so find out what they are in the location of your choice and how that would work in conjunction with your post-wedding celebration. Also, ask if there’s a limit to the number of wedding guests you can have, and whether you’ll be able to have bridesmaids and groomsmen, given the logistics.

Recommended: The Costs of Being in Someone’s Wedding

Park Wedding

Perhaps there are beautiful parks in your town or city full of unique flowers, landscaping, and more — or maybe there is one with special meaning to you, say, where the two of you attended college.

If that’s the case, you could contact the relevant parks department and find out any details about fees and permits. How accessible is the location for guests? If it’s a small park in the center of town, it’s likely to be fairly accessible. If it’s deep in the heart of a national park system, you may need to decide how to make it practical for guests to find and attend.

Other considerations for a park wedding include shelter in case of rain, having enough public restrooms (are they readily available or do you need to rent portable options?), and how comfortable you are getting married in an open space.

You might also need to find out what the park’s policy is on receptions. Can you set up tables and have food brought in? Or are you imagining a picnic complete with champagne? Dream it up, brainstorm details, and get confirmation from park officials.

One bride who got married in Glacier National Park wore her grandmother’s dress. In and of itself, that might not be unique — but the dress had been made out of the silk parachute her grandfather used in World War II! What unique touches can you bring to your own special park wedding?

Beach Wedding

You might consider a beach wedding, with its possibilities for one-of-a-kind photography, soft breezes, and tropical drinks. As practical considerations, do you plan to have a ceremony along the ocean on a public beach or will you locate a private beach? The permits you’ll need will likely be quite different if you plan to have just your ceremony there versus if you also plan to have a beachside reception complete with food, drink, and music.

You’ll also need to create a Plan B or otherwise have shelter available if the weather doesn’t cooperate. And, where you plan to have the ceremony, geographically speaking, may help to dictate what time of year your wedding should be scheduled. For instance, for a July wedding at your favorite beach, think about how far in advance to plan summer travel.

Then figure out the final details. Do you plan to have alcohol at your reception? That often isn’t permitted on beaches, but there are some that do allow guests to imbibe. Do you want to rope off a section of the beach? Build a bonfire? Again, you might want to ask what the rules and regulations are for the beach you have in mind and be flexible about modifying plans to help make it all come together.

Budgeting for Your Wedding

Even when you choose a free or inexpensive wedding venue, you’ll still likely want to come up with some creative ways to save money for the food, music, drinks, flowers, photography, video, and so on.

You can also explore different ways to help cover some of the wedding costs. For instance, a wedding loan might be an option to explore to help pay for your big day. Or perhaps your families might be able to help out financially with some of the venue-related expenses, such as catering.

During a discussion with your partner, you could both try to determine who will pay for what, and how much you’re willing to spend. It could help to discuss priorities so you’re in agreement about where to splurge and where you’re willing to compromise.

If, for example, you know that having beautiful flowers is important to both of you, that could rise to the must-have category. And maybe you want to spend more on photography and less on videography — or vice versa. What’s important is that you mutually create and agree upon a plan that’s unique to you and your special day.

Financing Your Wedding

When it comes to financing your wedding, a wedding loan could be a good option for your needs. These loans are unsecured personal loans used to cover wedding costs. Rates on personal loans tend to be lower than credit card rates, and they can offer more flexibility on the term of your loan and the amount you can borrow. Plus, you’ll get a fixed rate.

A personal loan from SoFi can be a fast, simple way to get extra cash for your wedding. You can apply online and, if you qualify, you can get the money as soon as the same day.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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You’ve probably heard of “buyer’s remorse” — that sense of regret people experience after making a big purchase like a car. What you don’t hear so much about is borrower’s remorse, which is the dissatisfaction that car buyers sometimes feel when they realize the financing they got through the dealer is costing them more than they thought.

Even the toughest hagglers can miss things when they hit the dealership’s business office and begin negotiating loan terms. But that doesn’t mean you can’t pump the brakes, pull over, and try again. Refinancing a car loan certainly isn’t for everyone, but it could be a potential option as long as you understand how to refinance a car and what the implications are.

When Refinancing a Car Loan Might Make Sense

Refinancing a car loan is the process of getting a new loan that essentially replaces the existing loan. The process involves filing a new loan application, and lenders will generally evaluate potential borrowers based on factors like their credit score and history to determine their new loan terms and interest rate.

Generally, borrowers refinance to secure a better interest rate or more favorable terms. For example, a lower interest can help borrowers pay less in interest over the life of the loan. Sometimes, borrowers may extend their repayment term to secure lower monthly payments. This can make the loan payments more affordable on a monthly basis, though ultimately it makes the loan more expensive in the long run.

Now that you know you can refinance a car loan, let’s take a look at when doing so might make sense.

Recommended: Pros and Cons of Car Refinancing

You Think You Can Do Better Than That Dealer-Sourced Loan

When you finance your car through a dealer, it can feel as though you’re going through some mysterious selection process. After the fact, you may realize that you could’ve found a better deal on your loan. Or, you might just come to hate working with your current lender. In either case, it might make sense to look into refinancing your car loan.

Your Overall Financial Position Has Improved

Perhaps your car loan was offered to you at a time when your finances weren’t as solid as they are now. Maybe you’ve since gotten a better job, paid off some debts, or have been working on making consistent payments on debts. Borrowers who have seen improvement in their financial situation or credit score may want to consider refinancing.

In that scenario, you may be able to qualify for a personal loan at a better interest rate than your original auto loan. This could lead to savings on interest, potentially lowering your monthly payments. With SoFi’s personal loan calculator, you can compare what you’re currently paying to the estimated payments you might have with a new loan.

Interest Rates Have Improved Since You Borrowed the Original Loan

Another reason to consider refinancing a car loan is if interest rates have changed since you originally bought the car. Interest rates on auto loans are influenced by benchmark rates, like those set by the Federal Reserve.

If the Federal Reserve rate is low, interest rates for borrowers may also be lower. But as the Federal Reserve rate increases, the cost of borrowing money is also likely to increase.

An Alternative to Car Loan Refinancing: Personal Loans

In some situations, you might consider taking out a personal loan to pay off your auto loan rather than refinancing. In fact, debt consolidation is one of the common uses for personal loans. This option might make sense if you have an older car or a model or mileage that disqualifies you from refinancing, or if you’re underwater on your loan.

With an unsecured personal loan, which is the main type of personal loan you’ll come across, you can apply for the remaining amount of the car loan. Just keep in mind that lenders have minimum loan amounts — for example, SoFi’s minimum personal loan amount is $5,000 (and more in some states, due to legal requirements).

To decide if this option makes sense, you’ll want to see if you get your personal loan approved for a better interest rate than your auto loan. Because auto loans are secured (meaning they’re backed by collateral — in this case, your car) they tend to have lower rates than unsecured loans, though not always, depending on your financial specifics.

The Takeaway

Refinancing a car loan may make sense for borrowers who can secure a better interest rate or otherwise more preferable terms than they have on their existing car loan. If a borrower’s financial situation has improved, or if benchmark interest rates have fallen, they may consider looking into refinancing options.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

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