How Long Does Medical Debt Stay on Your Credit Report?

The one-two punch of high healthcare costs and inadequate insurance coverage is enough to make medical debt a significant financial and social burden that puts many Americans on the ropes.

But in cases where that debt goes to collections and lands with a thud on a credit report, the financial repercussions go beyond simply draining savings accounts to impacting people’s access to car loans, mortgages, personal loans, credit cards and more (it’s a long list.)

How Do Medical Bills Affect Credit?

The Consumer Financial Protection Bureau ruled in January 2025 that lenders considering the credit worthiness of loan applicants could no longer use medical debt as a factor. That ruling sought to remove nearly $50 billion in medical bills from the credit reports of 15 million Americans.

The CFPB said its research found that medical debts provide little value in predicting a borrower’s ability to repay other debts. The CFPB also based its ruling on the fact that consumers frequently reported receiving inaccurate bills or bills they understood would be covered by insurance or other financial assistance programs.

But after the change in administrations in D.C., the issue landed in the U.S. District Court in Texas where a judge in July vacated the ruling, saying the CFPB had overstepped its authority.

Some restrictions about reporting medical debt to credit bureaus remain, however. Those restrictions make medical debt different from other types of debt reported in two key areas:

• Medical debt sent to collections cannot appear on a credit report for one year.
• Medical debt amounting to less than $500 does not appear at all.

“Federal rules have restricted the reporting of medical debt on credit reports,” Marcus Denning, senior lawyer at MK Law, said. “Medical debt can be considered (by lenders) in a larger financial underwriting framework, but the overall industry trend indicates less consideration of the debts as compared to credit card or personal loans.”

Are You Responsible for Your Spouse’s Medical Debt?

Responsibility for a spouse’s medical debt is dependent on time and place, with the state of residence ranking as the larger consideration.

In common law states, spouses are not legally responsible for each other’s medical debt with a few exceptions: if you co-signed for a medical treatment, agreed in writing to take responsibility for the debt, or the Doctrine of Necessaries applies in your state.

That doctrine holds spouses responsible for the other’s essential expenses. States often differ in the application of that doctrine, with some taking into account the financial situation of each spouse and whether they are still living together.

If you live in a community property state – Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin – medical debt (and other debts) incurred during the marriage are typically considered the responsibility of both spouses.

“You need to know the community property law in your state and the way it can be used in medical debt,” Rami Sneineh, Vice President of Insurance Navy, said. “In case (you still have doubts), it is advisable to seek the advice of a financial advisor or an attorney, as this will help you to get a better picture of your rights and responsibilities.”

Tips for Managing Medical Debt

Medical debt can be a bigger challenge for consumers than other types of debt, in that trying to understand what is covered by insurance, what you owe (and why) is complicated by medical billing that seems indecipherable.

If that’s your experience, start by asking providers and insurance companies for clarification on any charges you believe are inaccurate or coding that you simply don’t understand.

Bring that same diligence to monitoring your credit reports. Look closely for old charges or inaccuracies that could impact your credit score.

Budgeting on your own, or through credit counseling or a financial planner, is a good way to know what you can afford on a monthly basis to pay down medical debt before it reaches collections.

Those steps can keep medical debt from mounting and help providers (or collection agencies) see you as a partner in paying off debt.

“Early negotiation with the provider is the most appropriate way of paying big bills prior to collections,” Denning said. “In most hospitals, interest-free payment plans are offered upon contacting them after 30-60 days. Even a partial lump sum payment will cut the balance by 10%-30%.

“Settlements can also be done even after a debt goes into collections. Collection agencies should accept 50% or less of the total under conditions of showing hardship as long as the arrangement is in writing.”

Sneineh recommends hiring a billing advocate in cases where the medical bills are complex or you are disputing multiple inaccuracies. Advocates can also help negotiate with providers in some circumstances.

“They may charge a fee, but most of them take a percentage of the savings that they are able to get on your behalf,” he said. “A qualified billing advocate can be identified with the help of certain organizations, such as the American Association of Healthcare Administrative Management (AAHAM) or by searching in your area (for) medical billing professionals having this certification.”

Usa.gov provides a list of government assistance programs for individuals challenged by medical debt.

Other options, such as debt consolidation and debt settlement, are not specific to medical debt but could be an option.

Just make sure you understand the pros and cons of each before entering into any agreement.

Getting Medical Debt Off Your Credit Report

The first step toward getting medical debt off your credit report is to keep up with what appears on that report. Sounds simple, but many people don’t know that you can obtain free copies of your credit report from each of the three credit bureaus, Equifax, TransUnion, and Experian.

If you see something wrong, say something. Actually, it’s better to put your dispute in writing. Credit bureaus are required to look into disputes and to remove unverifiable debt.

You can file a dispute online, by phone or by mail. Detail the inaccuracy and include supporting evidence whenever possible. Keep after the credit bureau reporting the debt. Ask if it needs any additional documentation and follow up swiftly and accordingly.

If you’re dealing with a collection agency, send a debt validation letter to make the agency prove the debt is yours and the amount matches your documentation. Keep records every step of the way.

Don’t rule out the art of negotiation with the provider or the collection agency.

If you cannot pay off a bill in full, try to negotiate a low-interest or interest-free payment plan with your provider. You could also request a pay-for-delete agreement with the collection agency that might allow you to pay less than the full amount to have the debt erased from your credit report.

Be pro-active. If that advice seems like a cliche, keep in mind that medical debt can’t appear on your credit report for a year after it’s declared delinquent.

“Act as swiftly as possible,” Sneineh said. “Pay the debt before it comes to a year. In the event that you cannot afford to pay it (off), then you can negotiate a settlement with the debt collector.”

You can also dispute coverage decisions with your insurance company. Sometimes, simple billing errors are the reason why a procedure wasn’t covered. Keep in mind that phone calls seeking clarification may not be enough to keep medical debt off your credit report.

“Challenging false medical debt involves written requests of disagreement to the credit bureau and a creditor,” Denning said. “Information backups like insurance clarifications or bills are to be attached with the 30-day response by the bureau.”

What to Do If You Can’t Pay Your Medical Bills

Managing your medical bills might make you feel like you need a double major in economics and computer coding.

If you’ve requested itemized bills, checked for errors, double-checked those bills with your insurance company to ensure they were properly covered according to your plan, and still, you have verifiable medical debt you cannot afford, don’t panic.

See if your hospital or provider offers financial assistance programs. “Charity care” is a program designed to help low-income individuals and can mean full or partial waivers on medically necessary care.

Managing your medical bills before they become medical debt – and if at all possible before that debt lands on your credit report – should be priority No. 1.

One option is to check with your employer to see if it offers a Health Reimbursement Arrangement. An HRA is an employer-funded health benefit that allows employers to provide tax-free reimbursements to employees for qualified medical expenses.

If you’ve failed to satisfactorily negotiate your medical bills with your provider or the collection agency, there are other options.

Healthcare.gov is a place to start to see if you qualify for low-cost health insurance through the Affordable Care Act. Depending on your age and circumstances, you can seek assistance through Supplemental Security Income (SSI). The Benefits.gov website has a questionnaire that could help determine if you qualify for a government program.

The Bottom Line

When you buy a house, you know the mortgage terms up front. The same goes for car shopping.

Not so with medical expenses. Often, those expenses arrive unplanned. And even more often, you have no idea how much you’ll owe.

You get a particular treatment or surgery and then you wait for the bill to arrive, only to find insurance didn’t cover nearly as much as you’d hoped.

No wonder medical bills become medical debt with such regularity.

Even in the best scenarios where the billing for a procedure is plain and simple and your insurance plan meets your expectations, the costs of medical care can leave many struggling to stay out of debt.

Unpaid medical debt of $500 or more can stay on your credit report for seven years, impacting the interest rates you’ll be offered for personal loans, mortgages, and credit cards. A poor credit score can even affect security deposits, rental agreements and possibly employment opportunities.

Medical debt is rarely the only debt individuals struggle to pay, but it’s the kind that often arrives unannounced and lands like a left hook to the chin.

That’s even more reason to have a sound debt management plan – whether through a financial planner or through nonprofit credit counseling – in your corner.