Medical debt has the potential to negatively impact your credit score, as some healthcare providers may report unpaid debt to credit bureaus. However, there is positive news for consumers as the three major credit bureaus, TransUnion, Experian, and Equifax, have recently made changes to medical debt reporting. In July 2022, they extended the period before unpaid medical collections appear on credit reports from six months to one year, while paid medical bills are no longer included in credit reports. Moreover, medical debt under $500 has been removed from consumer credit reports since April 2023. Consequently, these changes allow consumers more time to renegotiate or dispute medical bills, alleviating stress and pressure associated with debt and reducing the likelihood of a low credit score. Higher credit scores resulting from paid medical debt removal and exemption of smaller debts from credit reports can enable consumers to secure better loan terms and qualify for credit cards with more favorable interest rates and rewards programs. The changes in medical debt credit reporting are set to benefit over 70% of consumers, and it is advisable to regularly check your credit report to ensure the implementation of such changes.

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