How Medical Collections Affect Your Credit & What’s Changing
Medical bills are one of the most common reasons people end up with collections on their credit report. Even small medical debts can lower your credit score and impact loan approvals, interest rates, and financial stability.
New Medical Debt Reporting Changes (2023 Updates)
📌 Paid Medical Collections Must Be Removed: As of July 1, 2022, credit bureaus must remove paid medical debt collections from your credit report.
📌 Medical Debt Under $500 No Longer Reported: As of April 2023, medical debts under $500 are automatically removed from credit reports.
📌 Medical Debt Grace Period Extended: Unpaid medical debt must be at least 1 year old before it can appear on credit reports (previously 6 months).
🔹 These changes mean millions of people can see immediate credit score improvements! If medical debt is still on your credit report, it may be removable under these new rules.
How Medical Collections Affect Your Credit Score
- Drop in Credit Score – Medical collections can lower your score by 50-100 points.
- Loan & Credit Approval Issues – Lenders may see unpaid medical debt as a financial risk.
- Higher Interest Rates – If approved, expect higher interest rates on loans & credit cards.
- Security Clearance Risks – Unpaid medical bills can impact government & military job approvals.
Even though medical debt is different from credit card or loan debt, it still impacts your credit if it’s sent to collections.
How to Remove Medical Bill Collections from Your Credit Report
- Check If Your Medical Debt Qualifies for Automatic Removal
Before disputing a medical collection, check if it qualifies for automatic removal under new credit rules:
- Was the medical collection PAID? → It must be removed from your credit report.
- Is the medical debt under $500? → It should no longer be reported.
- Is the medical debt less than a year old? → It should not appear on your credit report yet.
If any of these apply and your debt is still on your report, you can dispute it immediately for removal.
- Dispute an Inaccurate or Unverifiable Medical Collection
Under the Fair Credit Reporting Act (FCRA) and Fair Debt Collection Practices Act (FDCPA), you can dispute medical collections that are:
Incorrect – Wrong balance, dates, or provider name.
Outdated – Medical collections must be removed after 7 years.
Unverifiable – If the collection agency cannot provide proof, it must be deleted.
Step 1: Obtain a free credit report at AnnualCreditReport.com.
Step 2: Identify errors in your medical collection accounts.
Step 3: Send a written dispute letter to Experian, Equifax, and TransUnion.
Step 4: If the collection agency cannot verify the debt, it must be removed.
Many medical collections are inaccurate due to billing errors, making removals easier.
- Request a Pay-for-Delete Agreement
1. Paying a medical collection does NOT always remove it from your credit report unless it’s under the new rules.
2. However, some collection agencies agree to remove the account if you pay the debt.
- Contact the collection agency and request a pay-for-delete deal.
- Offer a settlement amount in exchange for deletion.
- Get the agreement in writing BEFORE making any payments.
Some agencies refuse pay-for-delete requests, but it’s worth negotiating.
- Validate the Medical Debt Before Paying
Before paying a medical collection, always request debt validation under the FDCPA.
- Send a debt validation letter to the collection agency.
- Request proof that they legally own the debt and have the right to collect.
- If they cannot provide proof, they must remove the collection.
Hospitals and insurance companies frequently make medical billing mistakes, so verifying the debt is crucial.
- Negotiate Medical Bills Directly with the Provider
If your medical debt has not yet gone to collections, you may be able to:
- Negotiate a lower payment or payment plan directly with the hospital or doctor’s office.
- Request a financial hardship discount if you qualify.
- Ask the provider to recall the debt from collections if you pay in full.
Once a medical bill is sent to collections, it’s harder to remove—but not impossible!
- Wait for the Medical Collection to Expire (7-Year Rule)
If disputing or negotiating the collection is unsuccessful, you may need to wait for it to naturally expire.
- Medical collections automatically disappear after 7 years.
- Older collections affect your score less over time.
At Credit1Solutions.com, we help clients challenge inaccurate medical collections and provide legal-backed dispute strategies to improve credit as quickly as possible.
How Long Do Medical Collections Stay on Your Credit Report?
Removing or correcting medical collection records earlier than the expiration date can significantly improve your credit standing.
How Credit1Solutions.com Helps Remove Medical Collections Faster
- We dispute inaccurate medical collection records using FCRA-backed legal challenges.
- We contact collection agencies to negotiate pay-for-delete deals.
- We escalate disputes when credit bureaus refuse to comply.
- We help clients rebuild credit after medical collections.
Instead of waiting 7 years, we help clients legally remove or minimize medical collection impact as soon as possible.
Client Testimonials
Jessica P., Homebuyer
“A medical collection was stopping me from getting a mortgage. Credit1Solutions.com got it removed, and I was finally approved!”
David R., Military Personnel
“I needed medical collections removed to secure a security clearance. Credit1Solutions.com handled everything, and my record was cleared!”
Mark J., Small Business Owner
“Credit1Solutions.com helped me dispute incorrect medical collections, and my credit score jumped 80 points!”
Frequently Asked Questions (FAQs)
Can I remove a medical collection before 7 years?
Yes, if it is inaccurate, unverifiable, or incorrectly reported, or if it qualifies under new medical debt rules.
Does paying a medical collection remove it from my credit report?
Yes! Under new 2023 rules, paid medical collections must be removed immediately.
Can Credit1Solutions.com remove medical collections for me?
Yes! We dispute inaccurate medical debt, negotiate with collectors, and help consumers rebuild their credit.
Get Medical Collections Removed the Right Way – Contact Us Today
📞 Call Now: 1-877-782-7839