Q. I want to buy a house of my own in the near future, but on my credit report I have multiple medical bills that were not paid. Can you tell me if medical bills will affect my getting a home loan? I also have on my credit report some credit card bills that have been paid off. I know usually that if you have proof that the bills were paid in full they will look past that but I don't have proof anymore of me paying them. Is there any way for me to clear up my credit and get a higher score?

A. The outstanding medical bills will be a problem. If they are showing up on your credit report as unpaid they will not go away until they are paid. Any unpaid bills such as this will certainly lower your credit score. They will also hurt you in another way because lenders look at your debt-to-income ratio, which shows what percent of your monthly income goes toward paying bills. Your unpaid medical bills will increase that percentage -- maybe beyond what a lender would consider a reasonable risk.

Regarding your credit card bills, you don't say how old those bills are, or whether you missed a couple of payments or what. On your bill it will always state the payment made the previous month, but it sounds as if you didn't keep the bottom halves of your statements. You might call the customer service departments at the credit cards in question. They may be able to help you track down your payment records. Without them you will have a problem convincing the three major reporting agencies that they were paid. They need some type of proof in order to erase black marks on your report.

Buying a house is a substantial investment that must be thoroughly thought out. The old saying, "If I can pay rent I can make mortgage payments," is only partially true. You have to pay taxes and insurance and maybe private mortgage insurance. And don't forget maintenance. Aside from general upkeep on your home, if your plumbing springs a leak or your furnace quits on you, those repairs come out of your pocket.

Having the outstanding bills on your credit report is going to lower your credit score -- maybe even move it into subprime territory, which means you will pay a lot more for a loan (probably at least 3% and it could be more) than a person with good credit. I would suggest that you get your financial house in order before buying a house.

Pay off your medical bills (even if it takes a long time) or they will continue to drag down your credit score. And try to get the problem with the credit card payments straightened out because they will also have a negative impact on your score. Other things also count when your credit score is figured. Check out our advice on how to raise your credit score and get started.