How a Covid-19 Test May Cost Someone $75,600

Angry man due to how a covid test messed up his credit and cost him a ton of money.

I cannot make this stuff up if I tried.

Working with so many credit repair consumers, I often hear crazy stories like this one where a man’s covid test could cost him a whopping $75,600.  One thing for sure, he felt like he should have a higher credit score.

Why the Covid-19 test could cost so much?

Imagine the excitement of buying a new home for your family then all that excitement turns to frustration.  I recently spoke to a client that is currently going through this.  He found out that his previously excellent credit score dropped significantly due to a $55 paid medical collection that was recently added to his credit report due to a Covid-19 test he took.  His lower credit score caused his interest rate to be approximately .75% higher on a $500,000 mortgage.  This higher interest rate caused his payment to increase by $210.00 per month.  Paying $210.00 more per month for 30 years, he will have to pay a whopping $75,600 more in interest.  That is one expensive Covid-19 test.  I did not ask him, but I hope his test was at least negative.Photo of money which he would save if he had a higher credit score.

Why did his credit score drop so much?

Based on my 30+ years of experience working with consumers credit, I can say the major drop in his credit score was caused by this new collection.  A collection like this is considered a major derogatory in the credit scoring world.  This client found it hard to believe that such a small medical bill, that he felt he was not responsible for, could cause such havoc in his life.  In speaking with seasoned Loan Officer Dana DiVecchio, from Holland Mortgage Advisors, his reaction was “this is crazy, never in my 30 years’ experience with credit reporting and lending have I seen such a thing”.   Crazy or not, this is reality, and this consumer will be faced with a large amount of financial credit damage.How to avoid credit damage and the need for credit repair.

Why did the collection even exist?

After speaking to the client, it sounds like the bill was in error.  He had very good insurance and was under the impression that that the Covid-19 test would cost him nothing.  Sadly, many consumers find out the hard way that errors often occur between medical providers and their insurance providers.  Often, these errors result in third party debt collections being added to a consumer’s credit report(s).

Credit repair help is available.

If your credit needs some help like this client, take action. There are a lot of resources available on steps to improve your credit. You can get free information from the FTC or contact a professional credit repair company like for help. By taking action to improve your credit, you may qualify for the home of your dreams or a new auto while paying less in interest charges.

Call us at 412-564-5370 with any questions / comments or schedule a free program review.  Like us on Facebook to receive future consumer credit tips.