Collections
Medical Debt on Your Credit Report: Rules and Your Rights
Medical debt is treated differently from other debt on credit reports. Here's what the current rules are and how to handle medical collections.
Medical bills are one of the most common reasons people end up with collection accounts, often through no fault of their own. Insurance delays, billing mistakes and surprise bills are everywhere. The credit reporting industry recognized this and changed how medical debt is reported.
Current medical debt reporting rules
Equifax, Experian and TransUnion adopted these policies in 2022 and 2023:
- One-year waiting period: medical debt in collections isn't reported until it's at least one year old, giving you time to work with insurance or set up a payment plan.
- Paid medical collections are removed: once a medical collection is paid, it's deleted from your credit report.
- Small balances aren't reported: medical collections with an original balance under $500 don't appear on credit reports.
Medical collections over $500 that are unpaid and more than a year old can still appear.
How medical collections affect your score
Newer scoring models like FICO 9 and VantageScore 3.0 and 4.0 give medical collections less weight than other collections. But many lenders, especially mortgage lenders, still use older models, so a medical collection can still matter.
Step 1: Check the bill before you pay
Medical bills are notorious for errors. Before paying a medical collection:
- Ask the provider for an itemized bill.
- Compare it with your insurance Explanation of Benefits (EOB).
- Confirm the claim was submitted to insurance correctly.
- Ask whether you qualify for the provider's financial assistance or charity care program. Nonprofit hospitals are required to have one.
Step 2: Validate the collection
If a collector contacts you, you can request debt validation in writing within 30 days of their initial notice. They must verify the debt before continuing to collect.
Step 3: Dispute reporting errors
Dispute medical collections with the credit bureaus if:
- The debt was paid (it should be removed).
- The original balance was under $500.
- It appeared before the debt was a year old.
- Insurance should have covered it, or the amount is wrong.
- It's not your debt.
Surprise bills
The federal No Surprises Act protects you from many surprise out-of-network bills for emergency care and certain services at in-network facilities. If you got one of these bills, you may not owe the extra amount.
Should you pay a medical collection?
If the debt is valid, paying it now gets it removed from your reports under the current rules, which is not true of most other collections. That makes paying valid medical collections especially worthwhile. Get the payoff agreement in writing. For non-medical debts, see other ways to raise your score.
Get help with medical collections
30 Day Credit Pros reviews every collection on your Equifax, Experian and TransUnion reports and identifies the ones that shouldn't be there. Start with a free credit assessment.
Not sure which items on your reports are worth disputing? Our team will go over all three reports with you for free.
Get a Free Credit AssessmentFrequently asked questions
Are paid medical collections removed from credit reports?
Yes. Under current bureau policy, paid medical collections are deleted from your credit report.
Do medical bills under $500 show up on credit reports?
No. Medical collections with an original balance under $500 are not reported by the major credit bureaus.
How long before medical debt shows on my credit report?
Medical collections are not reported until they are at least one year past due.
Can I dispute a medical collection?
Yes. If it's inaccurate, paid, under $500, less than a year old, or not yours, you can dispute it with the credit bureaus.