Medical Collections in Credit Report.

[Phineas Howie]

I have seen in the forums that different people approach Medical collections in a credit report differently.  Some automatically do not approve applicants with multiple collections regardless of what they are for, while other look more specifically at the nature of the collections. 

I am posting this so that there be a topic specifically about medical collections. My specific question for experienced landlords is: Do you ignore or put less weight in medical collections as opposed to other types of collections?

[Kyle J.]

I look at a credit report and any collection accounts on them on a case-by-case basis and take into consideration the type of collection account.  In my mind, there's a difference between a collection account for medical bills and one for a credit card or a cable bill. 

An unexpected medical bill can happen to anyone, and it's not hard for it to get beyond the point where the person can pay it back.  A friend of mine was between jobs and had no health insurance.  He was out with his dog when he was struck by another car driven by an unlicensed driver who happened to be an undocumented immigrant and drunk at the time.  Almost killed my friend (and the dog).  Fortunately, my friend survived but got hit with a $70k hospital bill that he couldn't pay.  The accident wasn't his fault, but because the other driver fled the country my friend couldn't recover any money and got stuck with the large hospital bill that he couldn't afford, which ultimately went to collections. 

On the other hand, I look at a someone who willingly runs up a credit card or a cable bill, and forces the company to send them to collections, as a personal choice and more indicative of someone who makes bad financial choices.  Of course, there are exceptions, but I think that's a pretty safe bet as a general rule.