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Changes to Medical Collection Debt Reporting Could Help Your Credit Score

NBC Universal, Inc.

Starting July 1, millions of Americans will see paid medical collection debt removed from their credit reports. 

Earlier this year, Equifax, Experian and TransUnion announced they will stop including medical debt that went to collections on credit reports, after it has been paid. You can read the announcement here.

The change could boost your “…overall FICO score by the removal of that item probably 20 to 30 points,” said Howard Dvorkin, chairman for

The three major credit bureaus are also now giving consumers up to a year before unpaid medical collection debt appears on their credit report. That time period used to be six months.

"This is definitely a win for consumers,” Dvorkin said. "Consumers need a win right now with crazy prices and things going on in the economy.”

Starting in the first half of 2023, the credit bureaus also say they will no longer include on credit reports medical collection debt under at least $500.

The changes are expected to get rid of about 70% of medical collection debt from consumer credit files, the bureaus said.

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