Does Medical Debt Affect Your Credit?

Yes, medical debt can still affect your credit, but far less than it once did, and the rules have changed several times in the last few years. As of October 2026, there is no federal ban on medical debt appearing in credit reports, because the rule that would have created one was thrown out in court. What protects most people now is a set of voluntary policies from the three major credit bureaus, which remove three categories of medical debt automatically.

The current status, in plain terms

The three nationwide credit bureaus, Equifax, Experian, and TransUnion, agreed in 2022 to three voluntary changes that still stand today (NCLC^[1]):

• Medical debt is not reported until it has been delinquent for at least a year, giving you time to resolve it with a provider or insurer.
• Paid medical debt is removed from credit reports entirely.
• Medical debt under $500 is never reported, even if unpaid and in collections. This took effect in spring 2023.

Taken together, these changes removed an estimated 70% of medical debt from consumer credit reports (Congressional Research Service^[3]).

The timeline of what happened

The rules have shifted several times, and knowing the sequence explains the current confusion:

• 2022: the three bureaus adopt the voluntary policies above.
• Spring 2023: the under-$500 exclusion takes effect.
• January 2025: the CFPB finalizes a rule that would have banned medical debt from most credit reports and barred lenders from using medical information in lending decisions.
• July 11, 2025: a federal court in the Eastern District of Texas vacates that rule in Cornerstone Credit Union League v. CFPB, after the CFPB itself withdrew support (CFPB^[2]).
• October 2025: the CFPB issues a notice stating the Fair Credit Reporting Act preempts state laws that would keep medical debt off credit reports.

The practical result: there is no federal ban today. Medical debt over $500, unpaid, and more than a year old can still appear, subject only to the bureaus' voluntary policies.

What can still show up on your credit

Because the federal rule is vacated, the kinds of medical debt that can still appear are unpaid debts over $500 that are at least a year old. Paid debts are removed, debts under $500 are excluded, and newer debts are held back for a year. If you have an older, larger, unpaid medical bill in collections, that is the situation most likely to affect your credit.

Whether it hurts your score depends on the scoring model. Newer models such as VantageScore 3.0 and 4.0 and FICO 9 and 10 place less weight on medical collections and ignore paid ones, but the still-widely-used FICO 8 counts them (NCLC^[1]). So the same medical debt can have no effect on one lender's score and a real effect on another's, depending on which model that lender uses.

What to do if medical debt is on your report

The first step is to get your reports and read them. You can request your credit reports free from the three bureaus at AnnualCreditReport.com, the site mandated by federal law.

Then, for each medical item you find:

• If it is under $500, it should not be there, and you can dispute it with the bureau.
• If it is paid but still listed, dispute the listing, since paid medical debt should have been removed.
• If it is inaccurate, such as a wrong amount or a bill that insurance should have covered, dispute it in writing to both the bureau and the provider or collector.

A medical bill in collections is still a debt you may owe, and removing it from a credit report does not erase the underlying obligation. Separately, the No Surprises Act^[4] protects against certain unexpected out-of-network bills, and the correct first move when a bill looks wrong is to confirm with the provider and insurer what you actually owe.

State laws add another layer

Some states have gone further than the federal rules. Several states, including New Jersey, have enacted their own limits on medical debt reporting, restricting what can be furnished to credit bureaus (NCLC^[1]). These vary, so the protection you have depends partly on where you live, on top of the nationwide bureau policies.

How common this problem is

The scale explains why the topic gets so much attention. Americans owe at least $220 billion in medical debt, with about 14 million people owing more than $1,000, according to KFF's analysis of federal survey data (KFF^[5]). A broader KFF Health News investigation found more than 100 million people, 41% of adults, carried some form of health care debt (KFF Health News^[6]).

Frequently asked questions

Does medical debt affect your credit score? It can, if it is an unpaid bill over $500 that is more than a year old, and depending on the scoring model. Under $500, paid, or recent medical debt generally does not appear (NCLC^[1]).

Is medical debt still on credit reports in 2026? Yes, some is. The federal rule that would have removed it was vacated in July 2025, so only the bureaus' voluntary policies limit it (CFPB^[2]).

Does medical debt under $500 go on your credit report? No. The three bureaus stopped reporting medical debt under $500 beginning in spring 2023 (NCLC^[1]).

Does paid medical debt stay on your credit report? No. Paid medical debt is removed from credit reports entirely (NCLC^[1]).

How long does medical debt stay on your credit report? Unpaid medical debt over $500 can appear once it is more than a year old, and generally remains for up to seven years under the Fair Credit Reporting Act, subject to the scoring model's treatment of it.

Does medical debt affect your credit score more than other debt? Under older scoring models like FICO 8, medical collections are treated like other collections. Newer models, including VantageScore 3.0 and 4.0 and FICO 9 and 10, weigh medical collections less (NCLC^[1]).

How do I dispute medical debt on my credit report? Request your free reports from the three bureaus at AnnualCreditReport.com, then dispute any item that is inaccurate, under $500, or already paid, directly with the bureau.

Is medical debt forgiven if I cannot pay? Not automatically, but hospital financial assistance can reduce or eliminate the bill, and removing it from a credit report should be pursued separately from the underlying debt.

This is patient education, not financial, legal, or credit advice. The regulatory status described here is current as of October 3, 2026, and this area changes frequently. Reviewed October 3, 2026.

Sources

• NCLC, The Latest on Keeping Medical Debt Out of Credit Reports^[1]
• Congressional Research Service, An Overview of Medical Debt^[3]
• CFPB, Prohibition on Creditors and Consumer Reporting Agencies Concerning Medical Information^[2]
• KFF, The Burden of Medical Debt in the United States^[5]
• KFF Health News, Diagnosis: Debt^[6]
• CMS, No Surprises^[4]