Medical Debts Could Kill Your Refinancing
Two erroneous $11 doctor bills stopped Jeanne White from refinancing her home.The 49-year-old resident of Colleyville, Texas, says she was shocked to learn in October that the two medical bills, which had been turned over to a collection agency, had caused her credit score to fall to 680 from 757 ? making refinancing far too expensive.
"I was told I'd have to pay $14,000 in closing costs to get a 5.5% interest rate," Ms. White says, substantially more than she would have paid with a higher credit score. When Ms. White, a retired sales manager, contacted the doctor's office, she found out the bills had been issued in error.
