Medical Debt & Your Credit Score:
2026 Rules Explained
Medical debt reporting depends on federal accuracy rules, voluntary bureau policies, and the details of each account. Here is what to verify before disputing or paying.
15M+
Reported bureau policy changes since 2022; results vary by account
<$500
Some bureaus may exclude medical collections below this amount
1 Year
A voluntary waiting period some bureaus apply to medical collections
Timeline of Changes
- Equifax, Experian, and TransUnion announce voluntary changes to medical debt reporting.
- Paid medical debt may be removed under voluntary bureau policies.
- Waiting period before unpaid medical debt appears extended from 6 months to 1 year.
- Changes took effect July 1, 2022.
- Major bureaus announced voluntary exclusions for some medical debt under $500.
- The policies and account eligibility should be verified before relying on them.
- A CFPB medical-debt rule was vacated by a federal court in 2025.
- Do not describe it as a current blanket ban or rely on projected effects.
- Multiple states pass additional protections (Colorado, California, New York, and others).
- VantageScore 4.0 already excludes most medical collections from scoring.
- Growing bipartisan support for federal medical debt protections.
- CMS price transparency enforcement strengthened with larger penalties.
- More states adding medical debt credit protections.
- Verify any future federal rulemaking before publishing an update.
- Hospital price transparency compliance rates improve, giving consumers more negotiation power.
Current Rules: What Applies Now
What CAN Appear
- Unpaid medical debt over $500
- Only after 365 days from the original billing date
- Only if sent to a third-party collections agency
- Medical debt from any provider type (hospital, doctor, dentist, etc.)
What CANNOT Appear
- Medical collections that a bureau’s current policy excludes
- Paid medical collections where the applicable policy covers them
- Medical debt within a bureau’s voluntary waiting period
- Debt still being processed by insurance
- Debt covered by an active payment plan with the provider (dispute if reported in error)
What May Change Soon
- Future federal credit-reporting proposals may change the baseline
- Verify any proposal or final rule before relying on it
- Several states have already enacted stronger rules than the federal baseline
- Growing industry momentum to exclude medical collections from scoring models
How Medical Debt Affects Your Credit Score
Not all credit scoring models treat medical debt the same way. Here is how the major models handle it.
FICO Score 9 and 10
FICO 9 and 10 significantly reduce the weight of medical collections compared to non-medical collections. Paid medical collections are ignored entirely. Unpaid medical collections still have an impact but less than credit card or loan defaults.
Note: Many lenders still use FICO 8 or earlier, which does NOT give medical debt special treatment. Mortgage lenders are transitioning to FICO 10T and VantageScore 4.0 in 2025-2026.
VantageScore 4.0
VantageScore 4.0 largely ignores paid medical collections and gives significantly less weight to unpaid medical collections. This model is used by many fintech lenders and credit card issuers.
Impact Ranges
Large unpaid medical debt ($5,000+)
Potential credit score drop: 50-100 points (decreases over time, heaviest impact in first 2 years)
Moderate unpaid medical debt ($500-$5,000)
Potential credit score drop: 25-60 points depending on overall credit history
Mortgage lending (FHA)
Ask the lender which current FHA guidance and credit model apply
VA loans
Ask the lender how current VA underwriting guidance treats medical collections
How to Remove Medical Debt from Your Credit Report
Get your free credit reports
Visit AnnualCreditReport.com to get free weekly reports from all three bureaus (Equifax, Experian, TransUnion). This service is available through 2026.
Identify all medical collections
Note the creditor name, account number, amount, and date reported for every medical collection account. Check all three reports since they may differ.
Check if any should already be removed
Check whether the account is covered by a current voluntary bureau policy. If information is inaccurate, dispute it with the bureau and furnisher and attach supporting records.
File disputes for incorrectly reported items
You can dispute online through each bureau's dispute portal or by sending a certified letter. Include documentation such as proof of payment, insurance EOBs, or billing statements showing the correct amount.
Negotiate "pay for delete" if applicable
You may ask about a settlement, but terms and credit-report treatment are not guaranteed. Get any agreement in writing before making payment.
Follow up within 30 days
A bureau generally has a FCRA reinvestigation period when the dispute meets the statute’s requirements. Check the results and dispute again if the response is incomplete or inaccurate.
Escalate if needed
If the bureau does not resolve your dispute, file a complaint with the CFPB at consumerfinance.gov/complaint. You can also file complaints with your state attorney general's office or consult a consumer rights attorney.
Credit Report Dispute Letter Template
Copy this template and customize the bracketed sections with your information.
[Your Full Name]
[Your Street Address]
[City, State, ZIP Code]
[Date]
[Credit Bureau Name]
[Bureau Address]
Re: Dispute of Medical Collection - Account #[ACCOUNT NUMBER]
Dear Dispute Department,
I am writing to dispute the following medical collection
account that appears on my credit report:
Creditor Name: [COLLECTION AGENCY NAME]
Account Number: [ACCOUNT NUMBER]
Amount Reported: $[AMOUNT]
Date Reported: [DATE]
I dispute this item for the following reason(s)
(select all that apply and attach supporting records):
[ ] The reported balance may fall within a current voluntary
medical-debt exclusion. Please verify the bureau’s policy.
[ ] The debt has been paid in full as of [PAYMENT DATE].
See attached proof of payment and review the applicable
current bureau policy.
[ ] The debt may have been reported before the applicable
reporting or voluntary waiting period. The relevant date is
[ORIGINAL DATE].
[ ] The debt is not mine. I do not recognize this
account and request verification.
[ ] The amount is incorrect. The actual amount owed
is $[CORRECT AMOUNT]. See attached documentation.
[ ] The debt was covered by insurance. See attached
Explanation of Benefits (EOB).
Enclosed documentation:
[List what you are attaching - payment receipts, EOB,
billing statements, etc.]
Please investigate this dispute under the Fair Credit Reporting Act,
15 U.S.C. Section 1681i, and correct or delete information that
cannot be verified. The statutory reinvestigation period and any
exceptions apply according to the facts and materials submitted.
I request that you send me written confirmation of the
results of your investigation.
Sincerely,
[Your Full Name]
[Your Phone Number]
[Your Email Address]Tip: Send dispute letters by certified mail with return receipt requested so you have proof of delivery. Keep copies of everything you send.
State-Specific Credit Protections
State rules may add protections beyond the federal baseline. Use this list as a research lead and check the current official source before asserting a state right.
| State | Law / Bill | Key Protections | Year |
|---|---|---|---|
| Colorado | Verify current official source | State-specific credit-reporting and medical-billing rules require verification of the current statute, effective date, debt type, plan, provider, and patient facts. This page does not establish a categorical reporting ban. | — |
| California | Verify current official source | State-specific credit-reporting and medical-billing rules require verification of the current statute, effective date, debt type, plan, provider, and patient facts. This page does not establish a categorical reporting ban. | — |
| New York | Verify current official source | State-specific credit-reporting and medical-billing rules require verification of the current statute, effective date, debt type, plan, provider, and patient facts. This page does not establish a categorical reporting ban. | — |
| Connecticut | Verify current official source | State-specific credit-reporting and medical-billing rules require verification of the current statute, effective date, debt type, plan, provider, and patient facts. This page does not establish a categorical reporting ban. | — |
| Oregon | Verify current official source | State-specific credit-reporting and medical-billing rules require verification of the current statute, effective date, debt type, plan, provider, and patient facts. This page does not establish a categorical reporting ban. | — |
| Washington | Verify current official source | State-specific credit-reporting and medical-billing rules require verification of the current statute, effective date, debt type, plan, provider, and patient facts. This page does not establish a categorical reporting ban. | — |
| Maryland | Verify current official source | State-specific credit-reporting and medical-billing rules require verification of the current statute, effective date, debt type, plan, provider, and patient facts. This page does not establish a categorical reporting ban. | — |
| New Mexico | Verify current official source | State-specific credit-reporting and medical-billing rules require verification of the current statute, effective date, debt type, plan, provider, and patient facts. This page does not establish a categorical reporting ban. | — |
| Nevada | Verify current official source | State-specific credit-reporting and medical-billing rules require verification of the current statute, effective date, debt type, plan, provider, and patient facts. This page does not establish a categorical reporting ban. | — |
| Illinois | Verify current official source | State-specific credit-reporting and medical-billing rules require verification of the current statute, effective date, debt type, plan, provider, and patient facts. This page does not establish a categorical reporting ban. | — |
| Minnesota | Verify current official source | State-specific credit-reporting and medical-billing rules require verification of the current statute, effective date, debt type, plan, provider, and patient facts. This page does not establish a categorical reporting ban. | — |
| Massachusetts | Verify current official source | State-specific credit-reporting and medical-billing rules require verification of the current statute, effective date, debt type, plan, provider, and patient facts. This page does not establish a categorical reporting ban. | — |
This table covers states with the most notable additional protections. Many other states have general consumer protection laws that apply to medical debt. See our State Medical Debt Rights page for a complete 50-state guide.
Frequently Asked Questions
How FairVisitHealth Helps with Medical Debt
Our Debt Reduction Hub gives you the tools to fight unfair medical bills and protect your credit.
Credit Report Dispute Kit
Generate customized dispute letters for each credit bureau based on your specific situation.
Debt Validation Wizard
Verify whether a collector has the legal right to collect and whether the amount is accurate.
Fair Price Comparison
Compare your bill against 50M+ real price points to prove if you were overcharged.
Statute of Limitations Checker
Find out if your medical debt is too old to be legally collected in your state.
Sources
- Consumer Financial Protection Bureau (CFPB) - Medical Debt Rulemaking, September 2024
- Equifax, Experian, TransUnion Joint Announcement - National Consumer Assistance Plan, March 2022
- Fair Credit Reporting Act (FCRA), 15 U.S.C. Section 1681
- CFPB Research Brief: Medical Debt Burden in the United States, 2024
- State legislative records: CO HB 22-1285, CA SB 1061, NY Medical Debt Protection Act, and others cited in table above