Credit Agencies Drop Medical Debt from Credit Reports

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Last updated on April 10th, 2023

Millions of Americans can anticipate a credit score boost thanks to new credit reporting changes from the three critical nationwide credit reporting agencies: Experian, Equifax, and TransUnion. The recent changes will see nearly 70% of medical debt collections wiped from consumer credit reports.

Credit Agencies Make Major Positive Change to Healthcare Debt Reporting

The three major credit bureaus agencies (Equifax, Experian, and TransUnion) have announced significant changes regarding how they report medical debts on credit reports. To help consumers faced with unexpected medical bills, the agencies have announced that they will not include paid medical collection debt on consumer credit reports.

Effective July 1, 2022, paid expenses received from healthcare facilities will no longer be included on consumer credit reports. In the first half of 2023, medical collection debt under at least $500 on credit reports will also no longer appear on credit reports. Additionally, the period before unpaid medical collection debt appears on a consumer’s report will be increased from six months to one year, giving consumers more time to work with insurance and healthcare providers to address their debt before it is reported on their credit file.

“Help People Focus on Their Financial and Personal Well-Being”

According to the Kaiser Family Foundation, two-thirds of healthcare-related debt results from a one-time or short-term medical expense arising from an acute medical need. After two years of the COVID-19 pandemic and a detailed review of the prevalence of medical collection debt on credit reports, the three national credit agencies are making changes to help people to focus on their well-being and recovery.

“Medical collections debt often arises from unforeseen medical circumstances. These changes are another step we’re taking together to help people across the United States focus on their financial and personal well-being,” said Mark W. Begor, CEO Equifax; Brian Cassin, CEO Experian; and Chris Cartwright, CEO TransUnion, in a press release. “As an industry, we remain committed to helping drive fair and affordable access to credit for all consumers.”

Related Article: How Long Information Remains on Your Credit Report

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About: Cory
Cory Santos

Cory is's "Jack of all trades" and resident credit expert, covering all facets of the credit card space. Cory holds academic degrees in both the U.S. and U.K. In addition to credit cards, Cory finds that jogging, cats, and memes are essential parts of a balanced day.

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