How a Doctor’s Bill Can Stop You From Buying a Property (Even With a Good Credit Score)
The Shock Many Home Buyers Don’t See Coming
You’ve worked hard to maintain a solid credit score. Your credit card is paid on time, your store accounts are in order, and your credit report looks clean — until the bank rejects your bond application. Why? An unpaid doctor’s bill you forgot about years ago.
It’s a frustrating reality in South Africa: not all debts work the same way when it comes to your credit profile, but even small unpaid accounts can cause major problems.
Two Types of Debt — and How They Affect You
1. Credit-Linked Debt (Direct Impact on Your Credit Score)
These are debts with registered credit agreements under the National Credit Act (NCA). They directly impact your credit score, and late or missed payments can drop your score fast. Examples include:
Credit cards
Personal loans
Clothing accounts
Vehicle finance
Retail store accounts
If you default here, your credit score decreases, and rebuilding it can take months or even years.
2. Non-Credit-Linked Debt (Doesn’t Lower Score, But Still Hurts Applications)
These debts don’t usually affect your credit score calculation directly — but they still appear on your credit report as judgments or defaults, and banks still use them to make lending decisions. Examples include:
Doctor’s bills
Hospital accounts
Some municipal bills
Certain service provider bills
If unpaid, these can be listed with credit bureaus and flagged as “default judgments” — which can block bond approval even if your score is high.
Why a Doctor’s Bill Can Be a Dealbreaker
Medical bills often fall into the second category. If you miss a payment and the account is handed over to collections, it can become a legal judgment on your profile. The bank might see you as a higher risk and reject your bond, even if your credit score is 700+.
The good news? Clearing a medical bill is usually easier than rebuilding a low credit score. You simply:
Pay the full amount.
Request a paid-up letter from the creditor.
Submit it to the credit bureau (e.g., TransUnion, Experian, Compuscan) for removal.
How to Protect Yourself
Check your credit report every few months — look for judgments or defaults.
Keep contact details updated so you don’t miss payment notices.
Pay small bills immediately to prevent them from escalating.
If you’re in debt review, work with your debt counsellor to ensure all accounts — credit-linked or not — are in good standing.
Bottom Line
A good credit score isn’t the full picture. A single unpaid doctor’s bill can derail your homeownership dreams just as easily as a missed credit card payment. Knowing the difference between the two types of debt — and how to resolve them — can be the difference between “bond approved” and “application declined.”
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