How medical debt affects your credit
Medical debt rules have changed in big ways recently. Here is what you need to know to protect your credit score.
Key takeaways
- Medical debts under $500 no longer appear on your credit report.
- Paid medical collections and debts under one year old are also removed.
- Hospitals must share their financial assistance policy if you ask.
- A payment plan or one phone call can often stop a bill from escalating.
Getting sick or hurt is stressful enough. The last thing you need is a surprise hit to your credit score. The good news is that the rules around medical debt and credit have changed a lot in the past few years — mostly in your favor.
Here is what is different now.
The three major credit bureaus — Equifax, Experian, and TransUnion — removed most medical collections from credit reports starting in 2022 and 2023. Medical debts under $500 no longer show up on your credit report at all. Paid medical collections are also removed. And medical debts that are less than one year old no longer appear either.
On top of that, a rule finalized by the Consumer Financial Protection Bureau (CFPB) in early 2025 would ban medical debt from credit reports entirely. That rule may still face legal challenges, so it is worth keeping an eye on the news.
Even with these changes, medical debt can still cause problems. If a bill goes unpaid for a long time, it can still affect you in other ways — like going to collections or leading to a lawsuit. So it is still worth taking action.
Here are some practical steps you can take right now.
First, check your credit reports. You can get free reports from all three bureaus at AnnualCreditReport.com. Look for any medical collections that should have been removed under the new rules. If you spot one, you can dispute it directly with the credit bureau.
Second, talk to the hospital or provider. Many hospitals have financial assistance programs, sometimes called charity care. You do not have to have zero income to qualify. Ask for their financial assistance policy in writing — they are required to provide it.
Third, ask about a payment plan. Most providers will work with you. Even a small monthly payment can keep a bill from going to collections.
Fourth, if a bill has already gone to collections, ask the collector for proof the debt is yours. You have the right to request this. Sometimes old medical bills get mixed up or inflated.
Finally, do not ignore the bill hoping it will disappear. That can make things worse. A quick phone call can often open up options you did not know existed.
You have more protection than you did a few years ago. Use it.
Related FAQs
Common questions about this topic, answered simply.
Will a medical bill hurt my credit score?
It depends on the size and age of the bill. Medical debts under $500 no longer appear on credit reports at all. Debts under one year old are also protected. But larger, older unpaid medical bills can still show up as collections and lower your score.
How do I remove a medical collection that should not be on my report?
Go to AnnualCreditReport.com and pull your free credit reports. If you see a medical collection that is under $500 or has been paid off, you can file a dispute with the credit bureau that is showing it. The bureau is required to investigate and remove it if it does not meet current rules.
What is charity care and how do I apply?
Charity care is a financial assistance program that many hospitals are required to offer. It can reduce or even eliminate your bill depending on your income. Ask the hospital billing department for their financial assistance application — you can request it at any time, even after the bill is due.
Can a hospital send me to collections right away?
No. Under current credit bureau rules, medical debts must be at least one year old before they can appear on your credit report. This gives you time to work out a payment plan or apply for financial assistance before your credit is affected.
What if I cannot afford to pay anything right now?
Call the hospital or provider and explain your situation honestly. Many have hardship programs or will pause collections while you apply for assistance. Ignoring the bill usually leads to worse outcomes, so even a short call can help.
Does medical debt affect my ability to get a loan or credit card?
It can, even if it does not appear on your credit report. Some lenders may ask about outstanding debts during the application process. Resolving medical bills when you can helps keep your overall financial picture cleaner and may improve your chances of approval.
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