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Does Medical Debt Appear on Your Credit Report?

Last Updated: July 26, 2024

6 min read

Table of contents

Does medical debt affect your credit?

How long does medical debt stay on your credit report?

How do you prevent medical debt from affecting your credit?

Can you get medical debt off your credit report?

Key points:

The three major credit bureaus made changes in 2022 and 2023 to how medical debt collection affects credit reports.
Medical bills over $500 that go to collections can still appear on your credit report.
You can prevent medical bills from harming your credit score by paying bills promptly, monitoring your credit report, and taking action if issues emerge.

After a medical emergency or a routine procedure, you’ve probably braced yourself for the eventual bill. It’s easy to fall behind on medical debts, especially if you have complex health concerns or see many doctors. Once medical bills go to a debt collector, they can start to impact credit scores. Fortunately, changes to medical collection debt reporting could eliminate medical debt collection from many credit reports.

Does medical debt affect your credit?

In July 2022, the three major credit bureaus joined efforts to remove reporting of paid off medical debts. In April 2023, they also removed medical debts valued under $500, according to the Consumer Financial Protection Bureau (CFPB^®).

The Congressional Research Service confirmed that following the July 2022 reforms, medical bills don’t appear on your credit until after a full year in collections. Additionally, medical collection debt doesn’t remain on your credit report after it's paid.

Medical providers typically don’t report payment information to a credit bureau. However, if a medical bill is overdue, a collection agency may take over your account. Previously, medical collections would start reporting on your credit after six months and continue to report, even after you’d paid your debt.

Now that these smaller bills don’t make it on a consumer credit report, it can alleviate the credit burden for many consumers.

Paying medical debt with your credit card could have an impact

Some consumers may choose to use their credit card to pay a medical bill (instead of a check or debit card payment from a bank account). A credit card can help you cover health care in case of an unexpected medical bill, but it comes with a few risks.

Are you confident you can pay off the balance before it begins accruing interest? If not, you could end up paying costly interest on the debt.

Depending on the size of your medical debt, adding this to a credit card can skew your credit utilization ratio (the percentage of available credit you’re using). Your credit utilization ratio can influence your credit score.

If you miss or make a late payment on your credit card, this can also affect your credit report and credit score.

Did you know?

Financial hardship assistance programs can help you meet your financial obligations and preserve your credit. Discover^® Cardmembers facing a challenging financial time can visit the Discover Financial Education Center.

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How long does medical debt stay on your credit report?

Before the 2022 changes, unpaid medical bills that went to collections could remain on your credit report for up to seven years. The newest changes to credit reporting have eased that standard. Now, after you pay your medical debt, it’s removed from your credit report. If you can’t pay off your debt in full, paying it down below $500 can also mitigate its impact on your credit.

How do you prevent medical debt from affecting your credit?

You can take some measures to safeguard your credit from the effects of unpaid medical debt.

Ask your medical provider for an itemized bill.

Review the services you’ve received. Ask your provider for clarification if any charges look incorrect or confusing. If you have health insurance, make sure your provider has requested payment from your insurer, especially for bills that seem overly expensive.

Discuss payment plans with your health care provider.

If you can’t afford to pay off an entire medical bill upfront, ask your provider if it’s possible to pay in a series of installments. Consider your budget carefully, including your income, bills, and anticipated future expenses, before deciding on a payment plan. Then, make sure you have the terms of your payment plan in writing.

Pay the medical bill by its due date.

Always pay bills on time, whether you cover the entire balance or agree to a payment plan. If you’re paying installments, incorporate the bill into your monthly budget and set aside funds from each paycheck. Save documentation of each payment in case you need to show proof in the future.

Seek financial assistance.

The CFPB reports that nonprofit hospitals in the United States offer financial assistance programs for uninsured and underinsured patients. These programs provide free or heavily discounted medical care to people who qualify. Even if your bill is from a for-profit hospital or facility, many other medical institutions have financial assistance programs or work with organizations that can help. It’s always a good idea to ask.

Can you get medical debt off your credit report?

If your unpaid medical debt is already impacting your credit, don’t panic. You can take a few steps to manage it and get it removed from your credit report.

Pay off your medical debt.

The most straightforward way to remove your debt from your credit report is by paying off whatever you owe. Paid medical debt won’t appear on your credit report, so the faster you can pay your debt, the sooner you can repair your credit.

Reduce your medical debt to less than $500.

As of 2023, your credit report should no longer reflect any medical debts smaller than $500. While totally paying off your debt may help you avoid future financial difficulties, paying it off below $500 can still bring relief.

Dispute medical bills that appear inaccurate.

You can access a free copy of your credit report from each primary credit reporting agency every twelve months. Look out for inaccuracies, like charges that your health insurance should cover or that you’ve already paid off. You can reach out to the healthcare provider or the debt collection agency to resolve it, This might mean you’ll need to provide proof of payment. Try to collect all the documents you have related to the incorrect charge in case you need to verify anything.

Apply for medical debt relief.

Depending on your income level, you may qualify for debt forgiveness from certain hospitals or through local and state programs. Some nonprofits and religious organizations may also help you manage your medical debts before or after they affect your credit report.

The last thing anyone wants to deal with on top of an illness or medical issue is an unpaid medical bill affecting their credit score. Nevertheless, it’s essential to monitor your credit report and your medical bills to identify and address any problems quickly. Actions like seeking financial assistance when necessary, disputing erroneous charges, and taking advantage of payment plans can help you manage your medical bills and credit score.

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