Medical Debt and Your Credit Report: What Shows and What to Do

Published by the Modern Lending Solutions editorial team. Last reviewed: October 30, 2026.

Short answer: paid medical collections, medical collections under $500 and medical debt less than a year old should not appear on your credit reports under the nationwide credit bureaus' own policies. The CFPB's 2025 rule that would have removed medical debt from credit reports was vacated by a federal court on July 11, 2025. Some states bar medical debt on credit reports by law (see State laws below). This is general information, not legal advice.

The credit bureaus' own changes

In a May 8, 2023 post, now archived, the CFPB wrote that the three nationwide credit reporting companies:

removed all paid medical debts from consumer credit reports (CFPB);
removed medical debts less than a year old, and now wait one year before allowing medical debt to appear on a credit report (CFPB);
removed medical collections under $500, a step that went into effect on April 11, 2023 (CFPB).

The same post notes that this does not include credit card collections, even if you used the card to pay a medical bill (CFPB). These are the companies' own policies, not a federal rule, so check your reports yourself.

What happened to the CFPB's 2025 medical debt rule

On January 7, 2025, the CFPB issued a final rule that prohibited credit reporting companies from including medical debt information on credit reports and prohibited creditors from considering it (CFPB).
On July 11, 2025, the U.S. District Court for the Eastern District of Texas vacated the rule, at the joint request of the CFPB and the plaintiffs (CFPB).
The CFPB's page, read on October 30, 2026, says the rule's materials are for reference only, and that the Fair Credit Reporting Act permits reporting coded medical debt information as long as it does not identify the specific provider or the nature of the medical services (CFPB).

As of October 30, 2026, the rule is not in force. The bureaus' own policies above are what limits medical debt on reports.

Before a collector can report a debt

Under federal rules, a debt collector must not furnish information about a debt to a credit reporting company before it speaks to you about the debt, or mails or electronically sends you a message about it and waits a reasonable period for a notice that it could not be delivered (12 CFR 1006.30(a)). Your rights with a collector are in your rights with a debt collector.

State laws

Some states bar medical debt on credit reports by statute. The laws below were checked against official legislature or code text on October 30, 2026. This list is not complete, and it is not legal advice.

California: SB 1061, Chapter 520 of 2024, approved September 24, 2024 (SB 1061), in effect January 1, 2025 under the state constitution's rule for regular-session statutes (Cal. Const. art. IV, sec. 8). Civil Code 1785.27 says a person shall not furnish information regarding a medical debt to a consumer credit reporting agency, and a medical debt is void and unenforceable if a person knowingly does. Civil Code 1785.13 bars credit reporting agencies from making a report containing medical debt, and 1785.20.6 bars using medical debt on a report as a negative factor in a credit decision. From July 1, 2025, a contract creating a medical debt must state this (SB 1061).
Colorado: HB23-1126, Chapter 374, approved June 5, 2023, in effect August 7, 2023 (HB23-1126). C.R.S. 5-18-109(1)(f) bars a consumer reporting agency from making a consumer report containing an adverse item of information it knows or should know concerns medical debt. It does not apply to a credit transaction above the federal conforming loan limit for a one-unit property, and the act repeals (1)(f) effective July 1, 2028 (HB23-1126).
New York: S4907-A, the Fair Medical Debt Reporting Act, Chapter 727 of 2023, which took effect immediately by its terms (S4907-A). General Business Law 380-j(a)(3) bars a consumer reporting agency from reporting or keeping in a consumer's file information relative to a medical debt (GBL 380-j). Public Health Law 4926 bars hospitals, licensed health care professionals and certified ambulance services from furnishing any portion of a medical debt to a consumer reporting agency (S4907-A).
Minnesota: 2024 Session Laws Chapter 114, article 3, section 79, signed May 21, 2024, in effect October 1, 2024 (Laws 2024, ch. 114). Minnesota Statutes 332C.03 bars a collecting party from reporting medical debt to a consumer reporting agency, and bars a consumer reporting agency from making a report containing information it knows or should know concerns medical debt (Minn. Stat. 332C.03).

Check your state: ask your state attorney general's office what applies where you live, and you can submit a complaint about a credit report to the CFPB.

Check and dispute your reports

Get free weekly credit reports from all three nationwide bureaus at AnnualCreditReport.com (FTC).
Look for a paid medical collection, one under $500, one less than a year old, or one that is not yours.
Dispute errors with the credit bureau and with the company that reported the debt (FTC). Step by step: how to dispute a reporting error.
If a dispute is not resolved, you can submit a complaint to the CFPB.

Ask the hospital before you pay

If the bill is from a nonprofit hospital, ask about its financial assistance policy before you pay or borrow: see hospital bill financial assistance. For bills still with the provider, compare a medical bill payment plan vs a personal loan.

If you still need to borrow

This example is only for the math, not an average medical debt. It borrows $2,000 over 24 months at the Federal Reserve's August 2026 averages: 11.90% APR for 24-month personal loans and 22.36% for credit card plans (G.19). Your rate depends on your credit and the lender.

Option	Monthly payment	Interest	Total paid
Personal loan at 11.90%	$94.05	$257.20	$2,257.20
Credit card at 22.36%	$104.11	$498.64	$2,498.64

$94.05 x 24 = $2,257.20, and $104.11 x 24 = $2,498.64. Before you add a payment, see how to budget for a loan payment.

Checklist

Pull your free reports and look for medical collections.
Dispute any paid, under-$500, less than a year old or wrong entry.
Ask the hospital about financial assistance before you pay.
Ask the provider for a payment plan before you borrow.

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Sources

Disclosure: Modern Lending Solutions is not a lender, loan broker or agent for any lender or loan broker, and does not make credit decisions. Any compensation we receive is paid by participating lenders, only for advertising services. This guide is general information, not financial or legal advice.