For decades, medical debt appearing on your credit report could tank your credit score and follow you for years — even if you had insurance, even if the bill was in dispute, even if you’d been sick and the charges were out of your control. That landscape has changed significantly since 2022, with more changes potentially coming.
Here’s what the rules actually say now, how to find out what’s on your report, and what you can do about it.
What Changed in 2022–2023
The three major credit bureaus — Equifax, Experian, and TransUnion — jointly announced several significant changes to how medical debt is reported:
Change 1: Paid Medical Collections Removed (July 2022)
Medical debts that have been paid are no longer included in consumer credit reports from any of the three major bureaus. If you paid a medical collection account, it should now be removed from your report automatically.
Action: If a paid medical collection still appears on your report, dispute it with the credit bureau — it shouldn’t be there.
Change 2: Medical Debts Under $500 Removed (March 2023)
Medical collection accounts with balances under $500 no longer appear on consumer credit reports. This eliminated a significant category of medical debt reporting that had disproportionate impact relative to the amount actually owed.
Action: If a medical collection under $500 still appears on your report, dispute it.
Change 3: 12-Month Grace Period (July 2022)
The waiting period before an unpaid medical debt can appear on your credit report was extended from 6 months to 12 months. This gives patients more time to work with insurers and providers before the debt hits their credit.
What Can Still Appear on Your Credit Report
Despite these changes, medical debt can still affect your credit in certain situations:
- Unpaid medical collections over $500 that are more than 12 months old
- Medical judgments (if a hospital or collector sued you and won — a judgment appears on your report and is separate from the underlying medical debt)
- Accounts charged off by the original provider and sold to collectors (follows the same rules as other collections)
Medical debt is also still weighed differently by different credit scoring models. Newer FICO and VantageScore models have reduced the weight given to medical collections. Older models (still used by some lenders) may weight them more heavily.
The CFPB’s Proposed Rule (2024)
In January 2024, the Consumer Financial Protection Bureau (CFPB) proposed a rule that would ban medical debt from credit reports entirely.
Key aspects of the proposal:
- Would prohibit credit bureaus from including medical debt in consumer reports
- Would prohibit creditors from using medical debt information in credit decisions
- Would apply to all medical debt regardless of amount
Status: As of mid-2024, this rule is proposed but not final. It faces potential legal and regulatory challenges. However, it signals the direction of federal policy on medical debt reporting.
What this means for you now: The rule is not yet in effect — existing reporting rules apply. But if you’re dealing with medical debt affecting your credit, resolution now (before a final rule if it comes) is still in your interest.
How to Find Medical Debt on Your Credit Report
Step 1: Get your free credit reports Visit AnnualCreditReport.com to access free credit reports from all three bureaus. As of 2023, free weekly reports are available (not just the previous once-per-year access).
Step 2: Look for “Collection” or “Medical” accounts In the accounts section of each report, look for accounts listed as “Collection” with the original creditor listed as a medical provider, or accounts where the collection agency name is a medical debt specialist.
Step 3: Check all three bureaus Collectors don’t always report to all three bureaus. An account may appear on one report but not others.
Step 4: Note the key information For each medical collection, record:
- Original creditor (the hospital or provider)
- Collection agency name
- Original account open date
- Date of first delinquency (this starts the 7-year reporting window)
- Balance reported
- Status (unpaid, in collections, paid, etc.)
How to Dispute Medical Debt on Your Credit Report
Step 1: Identify What Shouldn’t Be There
Per current rules, these should NOT be on your report:
- Paid medical collection accounts (remove them)
- Medical collections under $500 (remove them)
- Any medical debt that appeared in under 12 months after becoming delinquent
Step 2: File a Dispute with the Credit Bureau
You can dispute online, by phone, or by mail. Mail is recommended for documentation purposes.
Equifax: PO Box 740256, Atlanta, GA 30374 | equifax.com/personal/disputes Experian: PO Box 4500, Allen, TX 75013 | experian.com/disputes TransUnion: PO Box 2000, Chester, PA 19016 | transunion.com/credit-disputes
Your dispute letter should:
- Identify the specific account by creditor name and account number
- State why the item should be removed (paid account, under $500, etc.)
- Include supporting documentation (payment confirmation, settlement agreement, etc.)
The bureau must investigate and respond within 30 days.
Step 3: Dispute Billing Errors at the Source
If the underlying debt is inaccurate — wrong amount, services you didn’t receive, debt you don’t owe — dispute it at the source:
- Send a debt validation letter to the collection agency (within 30 days of first contact)
- Dispute the underlying bill with the original provider — see our dispute letter template
- Resolving the dispute at the source is more reliable than credit bureau disputes alone
Ready to Take Action?
Our free Dispute Letter Generator builds both billing dispute letters and credit bureau dispute letters. Our Complete Dispute Kit is $19 one-time. Get it →
FAQ
Q: How long does medical debt stay on my credit report? A: Negative information (including medical collections) can stay on your credit report for up to 7 years from the date of first delinquency — regardless of whether the debt is paid or time-barred for lawsuits. The key date is the “date of first delinquency,” not the date the collection account was opened.
Q: Will paying a medical collection improve my credit score? A: Under current rules from the major bureaus, paid medical collections are removed entirely from credit reports — so yes, paying (or settling) a medical collection account should result in its removal and a potential score improvement. Check your report 30–60 days after payment to confirm removal.
Q: My medical debt is over 7 years old but still shows on my report. What do I do? A: Dispute it immediately. Any negative item more than 7 years from the date of first delinquency must be removed. File disputes with all three bureaus with documentation showing the original delinquency date.
Q: Can medical debt prevent me from getting a mortgage? A: Medical collections can affect your credit score, which affects mortgage qualification and rates. However, many mortgage programs now exclude medical debt from debt-to-income calculations, and newer credit scoring models weigh medical collections less heavily. Talk to your lender about which scoring model they use.
Q: I settled a medical debt for less than the full amount. Will it show as paid on my report? A: Typically, settled accounts appear as “Settled” or “Settled for less than full amount.” Under current rules, the account should still be removed if it was a medical collection (since paid medical collections are no longer reported). Confirm with the bureau after 30–60 days.