Key Takeaways
- Paid medical collections and unpaid medical bills under 500 dollars do not appear on reports from Equifax, Experian, or TransUnion.
- Only unpaid medical bills of 500 dollars or more can be reported, and only after a one year waiting period.
- The CFPB rule that would have removed most medical debt was finalized in January 2025 and then vacated by a federal court in July 2025, so it is not in effect.
- How much a medical collection hurts you depends on the scoring model. Newer scores like FICO 9 and VantageScore 4.0 treat it lightly, while the widely used FICO 8 does not.
- You can dispute medical debt that is wrong or should not be reported, but accurate debt of 500 dollars or more can stay for up to seven years.
Medical debt can still affect your credit score, but much less than it used to. Paid medical collections and unpaid medical bills under 500 dollars no longer appear on reports from the three major credit bureaus. A federal court struck down the rule that would have removed medical debt entirely, so larger unpaid medical bills in collections can still show up.
That last part surprises people. For most of 2025 the headlines said medical debt was leaving credit reports for good. The rule behind those headlines is gone now. Here is what actually applies today and what you can do about medical debt on your report.
Does Medical Debt Still Affect Your Credit Score?
Yes, but the impact depends on the amount, whether it is paid, and which scoring model a lender uses.
The three major bureaus, Equifax, Experian, and TransUnion, made voluntary changes in 2022 and 2023 that still stand. Paid medical collections come off your report no matter the amount. Unpaid medical collections under 500 dollars do not appear at all. Only unpaid medical bills of 500 dollars or more can still be reported, and only after a waiting period.
Here is what shows up now.
| Type of medical debt | Appears on your credit report |
|---|---|
| Paid medical collection, any amount | No |
| Unpaid medical collection under 500 dollars | No |
| Unpaid medical collection of 500 dollars or more | Yes, after the waiting period |
What Happened to the CFPB Medical Debt Rule?
In January 2025 the Consumer Financial Protection Bureau finalized a rule that would have removed most medical debt from credit reports and barred lenders from using it in credit decisions. It was set to affect an estimated 15 million people.
That rule did not survive. On July 11, 2025, a federal court in the Eastern District of Texas vacated it in full in the case Cornerstone Credit Union League v. CFPB. The court found the CFPB went beyond the authority Congress gave it under the Fair Credit Reporting Act. The decision struck the rule down nationwide and blocked the agency from issuing a similar one.
So the sweeping federal removal that was promised is not in effect. The older bureau changes from 2022 and 2023 are separate from that rule and remain in place.
Do State Laws Still Protect You?
This part is unsettled, so be careful with what you read online.
At least 11 states had passed their own laws limiting or banning medical debt on credit reports as of mid 2025, and more have acted since. The problem is that the Texas court also wrote that the Fair Credit Reporting Act preempts these state laws. If that view holds, some state protections could be challenged.
Consumer advocates disagree. The National Consumer Law Center has stated that the ruling has no direct impact on state laws, since that part of the opinion was commentary rather than a binding order. In plain terms, whether your state law still protects you may depend on where you live and how future cases play out. Check your own state's current status before relying on it.
How Long Does Medical Debt Stay on Your Credit Report?
Unpaid medical collections do not show up right away. The bureaus wait one year from the date the bill goes to collections before it can appear. That waiting period gives you time to sort out billing errors or insurance before your credit takes a hit.
Once a qualifying unpaid medical collection is reported, it can stay for up to seven years from the original delinquency date. Paying it will not erase the seven year clock on older scoring models, but it will stop the debt from counting against you on newer ones, which we explain next.
How Do Credit Scoring Models Treat Medical Debt?
Not all credit scores work the same way. The score a lender pulls decides how much a medical collection actually costs you.
| Scoring model | How it treats medical collections |
|---|---|
| FICO 8, still used by most lenders | Counts paid and unpaid medical collections |
| FICO 9 | Ignores paid collections, weighs unpaid medical debt less than other debt |
| FICO 10 T | Same lighter treatment of medical debt, adds trended data |
| VantageScore 4.0 | Ignores paid collections and gives little weight to medical collections |
Two things matter here. First, FICO is used by most lenders, and many still run FICO 8, which is the harshest on medical debt. Second, most mortgage lenders use even older FICO versions, so medical collections can still weigh on a home loan. If a credit card issuer pulls a newer score, the same debt may barely move the number. FICO's own research on how it treats medical collections explains why paid collections are ignored in FICO 9.
How Can You Get Medical Debt off Your Credit Report?
You cannot force accurate, properly reported medical debt off your report just because you want it gone. What you can do is remove debt that should not be there and resolve the rest. Here is where to focus.
- Check that the debt even qualifies to be reported. If it is paid, or under 500 dollars, or less than a year old, it should not be on your report. If it is, dispute it.
- Dispute errors with all three bureaus. Medical billing and collection records are often wrong on amount, date, or ownership. You have the right to dispute inaccurate items, and the bureau generally must investigate within 30 days.
- Fix insurance and billing problems at the source. If your insurer should have paid, or the provider billed in error, getting the bill corrected can lead the collection to be removed.
- Ask about pay for delete, but do not count on it. Some collectors will agree to remove a tradeline in exchange for payment. They are not required to, and many will not, so get any agreement in writing before you pay.
If the debt is valid and correctly reported, disputing it will not make it disappear. In that situation your options shift to negotiating the balance, setting up a payment plan, or looking at broader debt relief if medical bills are part of a larger money problem. For a step by step walkthrough of the removal process, see our guide on how to clear medical debt from your credit report.
What Should You Do Right Now?
Pull your reports from all three bureaus and look for medical collections that break the current rules. Dispute anything that is paid, under 500 dollars, or newer than a year. For valid balances, deal with them before they age onto your report or grow with collection activity.
Medical debt rarely arrives alone. If it is stacking on top of credit cards or other bills, a lawyer can walk you through settlement, consolidation, or other options based on your situation. This article is general information, not legal advice, and your rights can depend on your state.
Frequently Asked Questions
Generally no. Accurate, properly reported medical debt of 500 dollars or more can stay for up to seven years. You can dispute it only if something about it is wrong, or ask a collector about removal in exchange for payment, which they are not required to accept.
It depends on the scoring model. On newer scores like FICO 9, FICO 10 T, and VantageScore 4.0, a paid medical collection is ignored. On the widely used FICO 8, paying it still leaves a mark, though resolving it prevents further collection activity.
No. It was finalized in January 2025 but a federal court vacated it in July 2025, so it never took lasting effect. The bureau changes from 2022 and 2023 are separate and still apply.
No. The three major bureaus do not report unpaid medical collections under 500 dollars. If you see one, dispute it with each bureau that lists it.
Sources
- Consumer Financial Protection Bureau, final rule and vacatur notice, Prohibition on Creditors and Consumer Reporting Agencies Concerning Medical Information (Regulation V)
- Congressional Research Service, An Overview of Medical Debt: Collection, Credit Reporting, and Related Policy Issues
- National Consumer Law Center, The Latest on Keeping Medical Debt Out of Credit Reports
- FICO, The Impact of Medical Debt Collections on FICO Scores
