How Long Do Medical Bills Stay on Credit and What It Means for Your Credit Score

Medical bills can have a significant impact on your credit score, but how long do they actually stay on your report? The good news is that medical debt is treated differently from other types of debt, and it's usually removed after a certain period.

Typically, medical bills can stay on your credit report for up to 7 years from the date of the original delinquency. This is a federal law that applies to all medical debt, regardless of the type of medical service or the hospital or provider involved.

If you're struggling to pay a medical bill, it's essential to communicate with your provider and work out a payment plan to avoid late fees and negative marks on your credit report. This can help prevent medical debt from becoming a long-term credit issue.

In some cases, medical debt can be removed from your credit report sooner, such as if it's paid in full or if it's deemed to be the result of identity theft.

Medical bills can significantly affect your credit, but it's not a straightforward process. Medical bills that have been paid won't appear on your credit reports or impact your credit scores.

However, unpaid medical debt can still affect your credit, depending on the original reported balance, how long the debt has existed, and which credit scoring model is used. Your payment history is the most important factor that goes into determining your credit scores, so failing to pay a bill can have serious consequences.

Medical collections that are older than one year and greater than $500 can negatively affect your credit scores if you don't pay them. But it's possible for a medical collection to affect your credit scores differently than other types of collections.

Paid medical collections were erased from credit reports in July 2022, and unpaid medical collections with an initial balance of less than $500 were removed from credit reports in April 2023. This change may have already helped some people improve their credit scores.

A different take: Do Lawyers Get Paid before Medical Bills

If you have medical collections, making the effort to file a dispute is worth it because bad credit scores can make borrowing money really expensive. Keeping consistent credit habits, such as paying your other bills on time and keeping your credit card balances low, can also help your score rebound.

Medical bills can be a significant source of stress, and their impact on your credit report can be just as overwhelming. Medical collections can stay on your credit reports for up to seven years from the date they become delinquent, which happens 180 days after they're first due.

If you're dealing with medical collections, there are ways to get them removed from your credit report. First, you can ask your health insurance company to pay the bill if you believe they should have covered it. If the bill is paid, it should be removed from your credit report.

Worth a look: First Progress Platinum Elite Mastercard Secured Credit Card

You can also dispute the medical bill if you believe it was placed on your credit report by mistake or due to fraud. If the bill is less than a year old, has been paid in full by you or your insurance provider, or has a starting balance of less than $500, you should be able to dispute the error with the credit bureau.

As of April 2023, the three credit bureaus have made changes to how they report medical debt. They no longer report unpaid medical debt under $500 and have removed any existing medical debt under $500 from your credit report. They also removed medical debt under a year old and will only start reporting it over $500 after it is over a year old.

Here's a summary of the changes:

By understanding the changes to medical debt reporting, you can take steps to protect your credit report and improve your credit score.

Medical bills can be a significant source of stress, and understanding how they affect your credit reports is crucial. Medical collections can stay on your credit reports for up to seven years from the date they become delinquent.

You can request your credit report in Spanish directly from each of the three major credit bureaus: TransUnion, Equifax, and Experian. To do so, call TransUnion at 800-916-8800, visit Equifax's website or call 888-378-4329, or click on Experian's website or call 888-397-3742.

Medical bills usually only show up on your credit reports if they're sent to collections, and in 2023, the three major consumer credit bureaus agreed to remove the following types of medical collections accounts from credit reports: paid medical collections accounts, medical collections less than a year old, and medical collections under $500.

Here are some key dates to keep in mind:

Medical collections can negatively affect your credit scores if you don't pay them, but it's possible for a medical collection to affect your credit scores differently than other types of collections. Some scoring models give less weight to outstanding medical debts than other types of collection accounts.

You can dispute medical collections on your credit reports by gathering evidence, filing a dispute with the credit bureaus, and keeping communication open.

To start, gather as much documentation as possible to prove the bill was paid. Collect payment records from your doctor's office, find copies of canceled checks, or dig up old credit card statements.

You can request your credit report in Spanish directly from each of the three major credit bureaus: TransUnion (800-916-8800), Equifax (888-378-4329), and Experian (888-397-3742).

To prevent future medical bills from affecting your credit, follow up with your insurance company, negotiate unmanageable bills, and consider hiring a billing advocate.

If you're overwhelmed by your bills, think about hiring a medical billing advocate to sort through your bills and try to negotiate them on your behalf.

While unpaid medical debt can impact your credit, it's not as severe as an unpaid credit card bill. However, lenders can still see your outstanding debts on your credit report.

Check this out: Negotiate Medical Bills

Here are some steps you can take to prevent future medical bills from affecting your credit:

Keep in mind that debt settlements can lower your credit score, even when working with a reputable company.

You can remove medical collections from your credit report if they are paid, the total is under $500, or if the collection is inaccurate.

Medical debt in collections will lower your FICO scores, but it will have no impact on your VantageScore scores.

If there is a medical collection on your credit report that you don't recognize, dispute it immediately with all three credit bureaus.

Outstanding medical debt on your credit report can still impact a lender's decision, even if it won't affect your VantageScore.