How Does Medical Debt Show Up on Your Credit Report?
- Some states have laws that keep medical debt off credit records.
- The major credit bureaus limit what kinds of medical debt appear in your credit history.
- Medical debts under $500, and any paid medical collection accounts, generally don't appear on your credit report.
Table of Contents
- Does Medical Debt Show Up on Your Credit Report?
- Credit Reporting Agencies Voluntarily Limit Medical Debt on Your Credit Record
- Sixteen States Limit Medical Debt on Your Credit Record
- Medical debt and your credit report, at a glance
- How Medical Debt Affects Your Credit Score
- What to Do About Unpaid Medical Debt
- How to Dispute Medical Debt on Your Credit Report
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If you owe medical debt, you're definitely not alone. Many people find themselves in need of debt relief because of an injury or illness that was totally out of their control.
An estimated 20 million people, or one in 12 adults in the U.S., have medical debt, according to the Kaiser Family Foundation. This includes 14 million people who have $1,000 or more in debt, and three million who owe more than $10,000.
If medical debt happens to you, remember first and foremost that it's not your fault. Your biggest focus should be your recovery, not the financial aspects of your illness. When you’re ready, you can take steps to learn about how medical debt affects your credit score.
Does Medical Debt Show Up on Your Credit Report?
Typically, healthcare providers don't report your payment history to the credit agencies. If you don't pay your bills for a long time, your creditor may send the account to a collection agency.
When that happens, whether medical debt shows up on your credit record depends on a few factors, including:
Where you live
The amount of your medical debt
The age of your unpaid debt
These factors matter because no federal rule currently keeps medical debt from affecting your credit.
Credit Reporting Agencies Voluntarily Limit Medical Debt on Your Credit Record
In many cases, your medical debt doesn't show up on your credit report thanks to a series of decisions starting in 2022 by the three major credit reporting agencies. The agencies decided they:
Wouldn't include medical debt on your credit record unless you were at least a year behind on payments
Would remove medical debt from your credit record once you've paid the balance in full
Leave any medical debt under $500 off your credit record, even if those debts are in collections.
This means if you owe $500 or less, or if you aren't over a year behind on payments, your medical debt shouldn't hurt your credit.
Even if you fall behind, the debt comes off your record once you've paid the balance in full. You generally don't end up with a lasting history of late payments the way you might with other overdue debt.
Sixteen States Limit Medical Debt on Your Credit Record
Even if you have debt that could show up on your credit record despite the credit bureaus' joint decision, where you live may still offer protection. In 15 states, laws limit when medical debt appears on a credit report, and in some cases, these laws prevent it from appearing at all.
States that limit medical debt on credit records include:
If you live in one of these states, the law should keep unpaid medical debt, or related collection activity, off your credit report, at least in some situations.
Medical debt and your credit report, at a glance
Medical debt and your credit report, at a glance
| Medical debt status | Shows up on your credit report? | How long it stays |
|---|---|---|
| Under $500, unpaid or in collections | No, in most cases | Not applicable |
| $500 or more, paid in full | No | Removed once paid |
| $500 or more, unpaid, less than a year overdue | No | Not applicable until a year overdue |
| $500 or more, unpaid, more than a year overdue | Possibly, depending on your state | Up to seven years |
How Medical Debt Affects Your Credit Score
Not every credit scoring model treats medical debt the same way. VantageScore's newer models, 3.0 and 4.0, leave out medical collection accounts entirely, regardless of balance or payment status. FICO's newer models also weigh medical collections less heavily than other types of collection accounts. These scoring changes are part of a broader set of updates the three major credit bureaus rolled out starting in 2022 to limit how much unpaid medical bills affect people's credit.
An unpaid medical collection of $500 or more—and that’s a year or more overdue—may stay on your credit report for up to seven years from the date of the missed payment that sent it to collections. If you pay the balance in full before then, the account comes off your report right away.
What to Do About Unpaid Medical Debt
There's a good chance your medical debt may not affect your credit report, especially if the debt is newer or your state offers protection. Even so, take a proactive approach to your medical debt.
Here's how:
Review your bills carefully. Make sure there are no billing mistakes. If you suspect there's an error, call the billing department.
Negotiate the charges. If there is medical care that insurance doesn't cover, ask your provider about options for discounts. If you demonstrate financial hardship, you're more likely to get a reduction in your bill.
Ask about an advocate. Many hospitals and other care providers have patient advocates who help you understand your rights and explore options to reduce your bills.
Think carefully before you charge medical bills to a credit card. It may be tempting, especially in an emergency. Only do it if you're able to pay the full balance right away. Credit cards come with high interest rates and don't have the protections medical bills do.
How to Dispute Medical Debt on Your Credit Report
If your credit report shows medical debt that isn't yours, is already paid, or falls under the $500 threshold, you have the right to dispute it.
First, request a free copy of your credit report from each of the three bureaus at AnnualCreditReport.com. Compare any medical collection accounts you find against your billing records and insurance statements.
If you spot an error, file a dispute with the credit bureau that reported it and with the original healthcare provider or collection agency. Include copies of your supporting documents, such as payment confirmations or insurance explanations of benefits.
Under the Fair Credit Reporting Act, the bureau generally has 30 days to investigate your dispute. If the bureau confirms the debt is inaccurate, it removes the account from your report.
Each bureau also has a dispute phone line: Equifax at 888-378-4329, Experian at 888-397-3742, and TransUnion at 800-916-8800. You can also file a dispute online on each credit bureau’s website: Equifax, Experian, and TransUnion.
Author Information
Written by
Kimberly Rotter
Kimberly Rotter is a financial counselor and consumer credit expert who helps people with average or low incomes discover how to create wealth and opportunities. She’s a veteran writer and editor who has spent more than 30 years creating thousands of hours of educational content in every possible format.
Reviewed by
Lindsay Vansomeren
Lindsay is a writer for Freedom Debt Relief. She's passionate about helping people learn how to manage their money better so that they can live the life they want. She enjoys outdoor adventures, reading, and learning new languages and hobbies.
Medical Debt and Credit Report Frequently Asked Questions
Can medical debt show up on a credit report?
Once medical debt enters collections, it could show up on a credit report in some circumstances.
The rules vary depending on where you live, the amount due, and how late your payments are. There are protections in place for medical debt that make it less likely to impact your credit.
What happens if you don't pay medical bills under $500?
Typically, medical bills under $500 don’t show up on your credit report or affect your credit. There is a small chance that a collector could sue you if you don't pay, although debt collectors typically don't pursue legal action for such a small amount.
If you owe your healthcare provider money, they might not agree to keep seeing you. The law says hospital emergency rooms must treat you, regardless of your ability to pay.
How long do medical bills stay in collections?
A collection agency generally has three to 10 years to pursue medical debt, depending on your state's statute of limitations for debt collection. Check with your state attorney general's office for the exact timeline where you live.
That timeline is different from how long the debt stays on your credit report. An unpaid medical collection of $500 or more may stay on your credit report for up to seven years from the date of the missed payment, even after the statute of limitations for collection has passed.
Does medical debt hurt your credit score the same as other collections?
No. VantageScore's newer models, 3.0 and 4.0, leave out medical collections entirely, no matter the balance or payment status. FICO's newer models also weigh medical collections less than other types of collection accounts. Older scoring models may not make this distinction, so the exact effect on your score depends on which model a lender uses.