Medical debt is one of the most common reasons people struggle with their finances, and it often shows up on credit reports. Having medical collections on your credit report can lower your credit score, make borrowing more expensive, and even impact your ability to rent or get approved for certain accounts.
With medical bills being the leading cause of bankruptcy in the U.S., knowing how to remove medical collections from your credit report is an important step in protecting your financial health.
The process isn’t always simple, but there are clear strategies that can reduce the damage and even get collections removed. This guide will walk you through how medical debt affects your credit, recent rule changes, and the steps you can take to repair your credit after medical bills go to collections.
How Medical Collections Affect Your Credit Report
Medical debt only becomes a problem for your credit when it is turned over to a collection agency and reported to the three major credit bureaus: Equifax, Experian, and TransUnion. Before that point, unpaid bills from your doctor or hospital are not reflected on your credit report.
Once reported, a medical collection can lower your credit score significantly—sometimes by more than 100 points. Unpaid medical collections can remain on your credit report for up to seven years from the date of delinquency.
There is an important difference between unpaid and paid medical collections:
- Unpaid medical collections: These show as negative accounts on your credit report and continue to hurt your credit score until they are resolved.
- Paid medical collections: Under new credit reporting rules, once a medical collection is paid, it should be removed from your credit report.
Credit scoring models also treat medical debt differently than other types of collections. Older scoring models, like FICO 8, weigh medical collections the same as any other debt in collections.
Newer versions, such as FICO 9 and FICO 10T, give medical debt less weight, which means paying off or resolving medical collections can have a quicker positive effect on your score. However, many lenders still use older scoring models, so the impact depends on which version is being used when you apply for credit.
Recent Credit Scoring Changes for Medical Debt
In recent years, major changes have been made to how medical collections appear on credit reports. These updates were designed to give consumers more time and flexibility when dealing with medical bills:
- 12-month waiting period: As of July 1, 2022, unpaid medical bills must be at least one year old before they can be reported to the credit bureaus. This grace period allows time for insurance adjustments and billing errors to be resolved.
- Removal of paid medical collections: Any medical collection account that is paid in full must be deleted from your credit report.
- Under $500 threshold: Beginning in 2023, medical collections with balances under $500 are no longer included in credit reports.
These changes are important because they give you more time to work with your insurance company or provider before collections damage your credit. They also help ensure that small bills or already-paid debts do not continue to weigh down your credit score.
See also: How Medical Bills Can Hurt Your Credit Score and What to Do
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How to Remove Medical Collections From Your Credit Report
If a medical collection shows up on your credit report, there are several ways to resolve it. Some approaches can remove the collection completely, while others reduce its impact over time.
Pay the Medical Debt in Full
Under current credit bureau rules, once you pay a medical collection in full, it should be deleted from your credit report. Always confirm with both the collection agency and the credit bureaus that the account has been updated and removed.
Dispute Inaccurate Medical Collections
Mistakes are common with medical billing. If the balance is wrong, the account is listed as unpaid after you’ve already paid, or the debt does not belong to you, file a dispute with each of the three credit bureaus. They must investigate within 30 days and remove or correct any errors.
Work With the Original Provider
Sometimes you can resolve the debt directly with your doctor, hospital, or clinic. If you were never properly notified about the bill or were incorrectly charged, ask the provider to recall the account from collections once you pay them directly.
Negotiate a Pay-for-Delete Agreement
Some collection agencies will agree to remove the account from your credit report if you pay in full or settle for a reduced amount. Get any agreement in writing before making payment. While not all agencies will do this, it can be worth asking.
File a Complaint if Errors Remain
If a collection agency or credit bureau fails to update your credit report correctly after you have resolved a debt, you can file a complaint with the Consumer Financial Protection Bureau (CFPB). This adds pressure to fix the reporting issue.
How to Dispute Medical Collections
If a medical collection account on your credit report is inaccurate, outdated, or does not belong to you, you have the right to dispute it. The Fair Credit Reporting Act requires credit bureaus to investigate disputes and remove errors. Here’s how to do it effectively:
Gather Your Documentation
Collect all records that prove your case. This may include:
- Medical bills and statements from your provider
- Explanation of Benefits (EOB) from your insurance company
- Receipts, canceled checks, or bank statements showing payment
- Any letters, emails, or notes from phone calls with the provider or debt collector
Having proof makes your dispute stronger and reduces delays.
File a Dispute With Each Credit Bureau
If the collection appears on more than one credit report, you need to dispute it with each bureau individually. You can file online, by mail, or by phone:
- Equifax
- Experian
- TransUnion
Include copies of your supporting documents, not originals. Clearly explain why the account is wrong and what outcome you are requesting (such as removal of the collection or correction of payment status).
Track the Investigation Timeline
Each credit bureau has 30 days to investigate and respond. If they verify the account is accurate, they must provide documentation from the debt collector or medical provider. If they cannot verify it, they are required to remove it.
Mark your calendar so you can follow up promptly if the 30-day deadline passes without a response.
Request Confirmation in Writing
If the collection is removed or corrected, ask for written confirmation from the credit bureau. Keep this record for your files in case the debt resurfaces on your credit report in the future.
How to Prevent Medical Debt From Harming Your Credit
While you can often remove or dispute medical collections, the best strategy is to stop them from appearing on your credit report in the first place. Here are steps that can help.
Ask About Payment Plans Early
When you receive a bill you cannot pay in full, contact your provider’s billing office immediately. Most hospitals and clinics will set up monthly payment plans with no interest, as long as you make consistent payments. This prevents the account from being sent to collections.
Double-Check Insurance Adjustments
Insurance claims and billing errors are common. Always confirm that your insurer has processed the claim correctly and that you’re only being billed for your portion. Request an updated bill if adjustments are missing.
Negotiate Your Medical Bills
If your balance is higher than you can afford, call the billing department and ask for a reduced rate. Many providers would rather accept partial payment than involve a collection agency. You can also ask if they offer “prompt pay” discounts or charity care programs.
Request Balance Forgiveness
If your financial situation makes repayment impossible, ask your provider if they can forgive all or part of the debt. Hospitals, in particular, often have hardship programs. A written explanation of your circumstances can improve your chances.
Consider a Low-Interest Loan if Necessary
If your provider will not set up a payment plan, using a low-interest personal loan may be better than letting the debt go unpaid. While this option adds interest, it keeps the medical debt off your credit report and avoids the damage of a collection account.
Protecting Your Credit After Medical Collections
Even if you resolve your medical debt, the work isn’t finished. Protecting your credit going forward helps you avoid repeat problems and strengthens your overall financial profile.
Check Your Credit Reports Regularly
You’re entitled to a free credit report from each of the three credit bureaus every year through AnnualCreditReport.com. Reviewing your reports helps you spot errors, confirm that paid collections are removed, and catch new issues early.
Dispute Errors Immediately
If you see a medical collection that should no longer appear—or any other inaccurate account—file a dispute right away. Quick action prevents the error from hurting your credit score longer than necessary.
Build Positive Credit Habits
Pay bills on time, keep credit card balances low, and avoid taking on unnecessary debt. Positive activity gradually outweighs past collections and helps your credit score recover faster.
Seek Professional Help if Needed
If medical collections or other negative items continue to drag down your credit, consider working with a professional credit repair service. Companies like Credit Saint can help dispute errors and negotiate with credit bureaus. They even offer a 90-day money-back guarantee, which gives you added peace of mind as you rebuild your credit.
Final Thoughts
Medical collections can feel overwhelming, but they don’t have to define your financial future. Thanks to recent rule changes, you now have more time to resolve bills before they impact your credit report, and paid medical collections should no longer appear at all.
The key is to stay proactive: check your bills for errors, communicate with providers early, and dispute inaccurate information on your credit report. With persistence, you can limit the damage from medical debt and start building your credit back up.
Taking small, consistent steps today can protect your financial health tomorrow.
