What can happen if medical debt is sent to collections?

When medical debt is sent to collections, it can have a detrimental impact on credit scores. This is due to the fact that when an account goes to collections, a collection agency typically reports this to credit bureaus. The presence of a collection account on a credit report can lower a person's credit score, making it more difficult to secure loans, credit cards, or favorable interest rates in the future.

While it's true that medical debt may not have the same impact on credit scores as other types of debt under certain circumstances, the fact that it can still result in a negative entry on a credit report solidifies why this answer is appropriate. Additionally, it's important to understand that medical debts are often treated differently by credit scoring models, but they can still cause damage, especially if left unresolved.

Unpaid medical debts can remain unresolved at collection agencies for long periods, but they do not remain unpaid indefinitely without any repercussions, as that is not a typical scenario. Therefore, the potential for damage to credit scores is the most accurate and comprehensive understanding of the consequences of medical debt being sent to collections.