Many people assume a small medical collection isn’t worth worrying about.
Unfortunately, even a relatively small collection account can affect your credit profile and, depending on your overall credit history, may impact your ability to qualify for a mortgage or obtain the most favorable loan terms.
If you discover a medical collection on your credit report, don’t assume it’s too small to matter. Review it carefully, verify it’s accurate, and discuss it with your loan officer before applying for a mortgage.
Sometimes the solution is simple—but waiting until you’re under contract can create unnecessary delays or limit your financing options.
My Advice
Don’t let a small medical collection become a big obstacle. If you’re planning to purchase or refinance a home, review your credit early so there are no surprises later in the process.