Medical debt can be overwhelming, and if not managed properly, it can impact your credit score. However, recent changes in credit reporting rules have made it easier for consumers to avoid long-term damage from medical bills.
How Medical Debt Affects Your Credit
Unlike other types of debt, medical bills don’t immediately appear on your credit report. If you fail to pay, the provider may send the debt to collections. In the past, unpaid medical bills in collections could hurt your credit score significantly. However, as of 2023, the three major credit bureaus—Experian, Equifax, and TransUnion—no longer report medical collections under $500 and give consumers more time to resolve outstanding medical bills before they affect their credit.
What You Can Do to Protect Your Credit
- Review Medical Bills for Accuracy – Always check your bills for errors and negotiate with providers if necessary.
- Communicate with Providers – Many hospitals and doctors offer payment plans or financial assistance.
- Monitor Your Credit Report – Ensure that any medical debt you’ve paid off is removed and that no inaccurate information is reported.
- Set Up a Payment Plan – If your bill is large, consider negotiating a manageable monthly payment before it goes to collections.
- Seek Financial Assistance – Some nonprofit organizations and hospital programs can help reduce or eliminate medical bills.
By staying proactive, you can minimize the impact of medical debt on your credit and protect your financial future. If you’re struggling with medical expenses, reaching out for help early can make all the difference.