Medical Debt Will Now Disappear From Your Credit Report Once It's Paid Off

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  • Many Americans struggle to pay high medical costs and fall into medical debt.
  • All three credit bureaus are changing how they report medical collection debt.
  • Paid off medical debt will no longer appear on U.S credit reports.

The news could provide a major boost to a lot of Americans.

Until recently, medical debt, even debt that has been paid off, could remain on a consumer's credit report for years. But due to recent changes made by all three credit bureaus, medical debt will disappear from your credit report once it's been paid in full. This is welcome news for U.S. consumers who want to improve their credit.

Due to the high cost of healthcare, many Americans struggle to pay expensive medical bills. For some, this results in their outstanding medical debt being sent to collections. Once medical debt goes to collections, it can appear on a credit report and can serve as a negative mark.

Until recently, medical collection debt could remain on your credit report even after you paid off the debt. But that will no longer be the case. Equifax, Experian, and TransUnion are changing how medical debt is reported on U.S. credit reports, and the changes are positive.

Effective July 1, 2022, all medical collection debt paid in full will no longer be included on U.S. consumer credit reports. But that's not the only positive change.

Previously, medical collection debt could appear on credit reports after six months. That timeframe has now been extended from six months to one year, giving consumers more time to address their debt before it hits their credit reports.

These changes will help consumers who have struggled with medical debt issues, and it could help some people improve their credit scores.

Expect additional changes in 2023

Consumers can expect additional changes to how medical collection debt is reported in the future. In the first half of 2023, all medical collection debt with an initial reported balance of less than $500 will be removed from credit reports.

How many consumers will benefit? These changes will result in nearly 70% of medical collection debt disappearing from consumer credit reports.

Don't ignore your credit report

When was the last time you reviewed your credit report? If you want to be in control of your finances, it's a good idea to take a look at it.

You should regularly review your credit report to find potential errors and to see what accounts are open and how much debt you have. You can use the information on your credit report to make more informed choices regarding your money to improve your credit.

If you've previously had medical collection debt on your report and have paid it off, you can check to ensure that it's no longer listed on your credit report.

Are you wondering how to check your credit report? It's easy to do. Through the end of 2022, you can get free weekly credit reports at Usually, consumers are entitled to a free copy of their credit report every 12 months from each credit reporting company, but they've been available weekly since early in the COVID-19 pandemic.

Check out our personal finance resources for additional tips and news related to essential money matters.

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