How Does Medical Debt Show Up on Your Credit Report?
- The Consumer Financial Protection Bureau created a rule to keep medical debt off credit reports, but a federal judge said the rule exceeded the CFPB's authority.
- Some states still have rules preventing medical debt from showing up on credit records.
- The major credit bureaus have chosen to limit what kinds of medical debt can show up in your credit history.
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If you owe medical debt, you're definitely not alone. Many people find themselves in need of debt relief because of an injury or illness that was totally out of their control.
An estimated 20 million people, or one in 12 adults in the U.S., have medical debt, according to the Kaiser Family Foundation. This includes 14 million people who have $1,000 or more in debt, and three million who owe more than $10,000.
If medical debt happens to you, remember first and foremost that it's not your fault. Your biggest focus should be on getting better, not the financial aspects of your illness. Still, you may wonder about the impact of medical debt on your credit score. That's understandable, since having good credit is important in many ways.
Does Medical Debt Show Up on Your Credit Report?
Typically, healthcare providers don't report your payment history to the credit agencies. However, if you don't pay your bills for a long time, the account may be sent to a collection agency.
When that happens, figuring out whether medical debt could show up on your credit record can be more complicated. That's because the rules vary, depending on things like:
Where you live
The amount of your medical debt
The age of your unpaid debt.
These factors matter because there's currently no federal rule preventing medical debt from affecting your credit.
The Consumer Financial Protection Bureau (CFPB) did put a rule in place in January 2025 that kept medical debts off credit reports. The rule also said creditors couldn't take medical debt into account when making a credit decision.
However, the new standard was challenged in federal court, and the court ultimately decided in a way that canceled the rule entirely.
Because the CFPB rule was struck down by the courts, medical debt could now show up on your credit report and be considered by lenders in making their decisions. That doesn't necessarily mean this will happen, though, because there are other protections that could stop medical debt from damaging your credit.
Credit Reporting Agencies Voluntarily Limit Medical Debt on Your Credit Record
In many cases, your medical debt will not show up on your credit report thanks to a 2022 decision by the three major credit reporting agencies. The agencies decided they:
Wouldn't include medical debt on your credit record unless you were at least a year behind on payments
Would remove all paid-off medical debt from your credit record
Leave any medical debt under $500 off your credit record, even if those debts are in collections.
This means if you owe $500 or less, or if you aren't over a year behind in paying, your medical debt shouldn’t hurt your credit.
And even if you do fall behind a bit, once you've paid off the balance, the debt will come off your record. You won't have a lasting history of late payments like you could if you let a different kind of debt fall behind.
Fifteen States Limit Medical Debt on Your Credit Record
So, what if you do have debt that could potentially be displayed on your credit record despite the credit reporting agency's joint decision?
Your debt still may not be on your credit report, depending on where you live. That's because in 15 states, there are rules limiting when medical debt can show up, and in some cases preventing it from being included on your report at all.
The states where there are limits on the display of medical info on your record include:
If you live in one of these states, the law should protect you from having unpaid medical debt or collection activities related to medical debt on your credit report, in at least some situations.
What to Do About Unpaid Medical Debt
While there's a good chance your medical debt won't affect your credit report—at least, if the debt is newer or if your state provides protection—it’s still good to be proactive about managing your debt.
Here’s how:
Review your bills carefully. Make sure there are no billing mistakes. If you suspect there’s an error, call the billing department.
Negotiate the charges. If there is medical care that insurance doesn't cover, ask your provider about options for discounts. If you can demonstrate financial hardship, you're more likely to get a reduction in your bill.
Ask about an advocate. Many hospitals and other care providers have patient advocates who can help you understand your rights and explore options for reducing your bills.
Be careful about using credit cards. While it may be tempting to charge your care, don't do that unless you can pay off the bills right away. Credit cards come with very high interest rates, and don't have the protections medical bills do.
If you are in over your head, a professional debt relief company like Freedom Debt Relief can help you explore your options.
Author Information
Written by
Kimberly Rotter
Kimberly Rotter is a financial counselor and consumer credit expert who helps people with average or low incomes discover how to create wealth and opportunities. She’s a veteran writer and editor who has spent more than 30 years creating thousands of hours of educational content in every possible format.
Reviewed by
Christy Bieber
Christy Bieber has been writing about personal finance and law for 16 years. She has a JD from UCLA School of Law with a focus on business law, and a BA in English, Media & Communications from the University of Rochester, as well as a Certificate of Business Administration.
Can medical debt show up on a credit report?
Once medical debt enters collections, it could show up on a credit report in some circumstances. However, the rules vary depending on where you live, the amount due, and how late your payments are. There are protections in place for medical debt that make it less likely to impact your credit.
What happens if you don't pay medical bills under $500?
Typically, medical bills under $500 don’t show up on your credit report or affect your credit. There is a small chance that a collector could sue you if you don't pay, although debt collectors typically don't pursue legal action for such a small amount.
If you owe your healthcare provider money, they might not agree to keep seeing you. The law says hospital emergency rooms must treat you, regardless of your ability to pay.
How long do medical bills stay in collections?
Medical bills can generally stay in collections for several years, until the statute of limitations runs out in your state. The statute of limitations for medical debt varies between three and 10 years, depending on where you live. Check with your state’s attorney general’s office.
Depending on your state and the amount you owe, medical debt may not show up on your credit report even if the debt is in collections. In that case, it won't affect your credit record like typical collection activities do.