How your medical bills can mess up refinancing -

Medical bills mess up refinancing

This is a problem you may not see coming: If you owe money on medical bills, it could mess up your chance to refinance your mortgage. 

Borrowers are learning the hard way that medical debt can put a dent in your credit score, and that can knock you out of contention for some pretty good interest rates. 

The worst part is, it may not even be real debt.  According to the Commonwealth Fund, a non-profit that focuses on healthcare, 14 million Americans have errors on their credit reports because of medical collections. 

Debts of as little as $20 or $30, when sent to collections, can really hurt your credit score. So your best strategy before you apply for refinancing is to pull your credit report. 

If you find an error, send a certified letter to the credit bureau explaining what is wrong, and of course, include copies of documents that prove it, if you can. The bureau can take a month to investigate, and will then contact the doctor's office or business that provided the information about the debt. That business will then investigate, as well. 

If they find the information was inaccurate, they are responsible for cleaning up your credit report and contacting all three of the credit bureaus. 

But that's not going to happen, of course, unless you pull your credit report. You can do that by going to

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