How to Pay Medical Debt and Avoid Damaging Your Credit

Do Medical Bills Affect Your Credit?

Medical bills can appear on your credit report if they become seriously overdue and are sent to a collection agency. Changes in credit reporting policies in recent years mean only certain medical collections will show up on your credit report. Paid medical debt, unpaid medical debts under $500 and unpaid debts less than one year old are no longer reported by the three major credit bureaus.

Several states have additional consumer protections that limit how and when medical bills can be reported to credit bureaus including:

• California
• Colorado
• Connecticut
• Delaware
• Illinois
• Maine
• Maryland
• Minnesota
• New Jersey
• New York
• Oregon
• Rhode Island
• Vermont
• Virginia
• Washington

In early 2025, the Consumer Financial Protection Bureau (CFPB) passed a rule that would have banned all medical debt from being reported to credit bureaus. However, this rule bill was later vacated by a federal judge. As of now, medical debt may still appear on your credit report under certain conditions. The ruling did not mandate the inclusion or exclusion of medical debt in credit reports.

Because newer FICO^® Score^Θ and VantageScore^® credit scoring models give less weight to medical debt than older versions, medical collections may not significantly harm your credit scores. This is especially true if your other credit history is positive.

Learn more: Credit Score Basics: Everything You Need to Know

How Long Do Medical Bills Stay on Your Credit Report?

Like other types of collections, unpaid medical collections can stay on your credit report for up to seven years. However, updated credit reporting policies mean:

• Paid medical bills are removed from your credit report.
• Smaller balances under $500 and accounts under 12 months old are excluded from credit reporting entirely.

If you can resolve your medical debt quickly or keep it below $500, it may never show up on your credit report at all.

How to Get Rid of Medical Debt

It's important to address medical debt head-on to avoid long-term consequences. Here are some ways to take control of your medical bills:

• Review your bill carefully. Before paying anything, request an itemized bill and check for errors. Make sure the charges are accurate, you weren't billed twice and your insurance has been applied correctly. If anything looks off, contact your provider or insurer to resolve the errors.
• Ask for a payment plan. If you can't afford to pay the full balance at once, ask the provider if they offer monthly payment plans. Many hospitals and clinics will let you spread out payments over time, often without interest. Just be sure to make your payments on time to avoid being sent to collections.
• Negotiate your bill. In some cases, you may be able to negotiate a lower balance. Hospitals sometimes offer discounts if you can pay in full or pay off your balance within a certain amount of time.
• Use your savings. If you have money set aside in an emergency fund or can access a health savings account (HSA) or flexible spending account (FSA), consider using those funds to pay down medical debt. Negotiate your bill first to maximize your savings.
• Look for financial assistance. Charity care or income-based assistance programs may be offered by your hospital or clinic. Several government agencies and nonprofit agencies also provide financial assistance to help with medical bills. You may qualify for reduced or free care based on your household income, especially if you're uninsured or underinsured.
• Consider using a credit card. If your medical bill is close to the one-year reporting threshold and you can't pay it off in time, you might consider using a credit card to pay the balance if you can do so without accruing much interest. A 0% intro APR credit card could help you pay off the bill over time without interest. Use this option if you're sure you can pay off the balance during the interest-free period.

Tip: Don't ignore medical bills. Working with your provider proactively can help keep medical debt out of collections.

What to Do if Your Medical Debt Is Already in Collections

If your medical debt has already been sent to collections, there are some steps you can take to protect your credit.

• Make sure the debt is valid. You have the right to request a debt validation letter from the collection agency. Use this letter to make sure the bill is legitimately yours, the amount is accurate and insurance has been applied correctly. If the collection agency can't prove the debt is correct, you have the right to dispute it with the credit bureaus.
• Check if it should be reported. For all consumers, medical debt under $500 or less than a year old should not appear on your credit reports. If they do, you can file a dispute with the credit bureaus to have the debt removed.
• Pay the balance down. Even if you can't pay off the entire balance, reducing your debt to below the $500 threshold can help remove it from your credit report. Ask the collection agency to update your report once the balance is paid down.
• Work with a credit counseling agency. If you're juggling multiple medical bills or other types of debt, a nonprofit credit counseling agency can help. They can assist with budgeting and may negotiate with providers on your behalf through a debt management plan.

Learn more: How to Deal With Debt Collectors

The Bottom Line

Medical debt doesn't always show up on your credit report, but when it does, it can have lasting consequences for your credit health. Fortunately, credit reporting agencies have made recent changes that offer more protection, especially for smaller or newer medical bills.

You can check your credit report for free to see if any medical bills are listed. If you find medical debt on your report, the strategies detailed above can help you resolve it and take steps toward improving your financial well-being.