The short version: the federal rule that would have stripped medical bills from your credit reports never took effect. A court vacated it in July 2025. But the voluntary changes the three national credit bureaus made in 2022 and 2023 are still in place, so most small and already-paid medical collections stay off your reports anyway. This guide lays out what’s actually true right now — what changed, what didn’t, and what you can do about medical debt on your file. Last reviewed July 2026; we update this page quarterly as the rules move.
What are the 2026 rules for medical debt on your credit report?
As of 2026, there is no federal rule banning medical debt from credit reports. The Consumer Financial Protection Bureau (CFPB) finalized one in January 2025, but a federal court in Texas vacated it on July 11, 2025, ruling the Bureau exceeded its authority under the Fair Credit Reporting Act (FCRA). So the rule you may have read about — the one estimated to clear roughly $49 billion in medical debt from about 15 million people’s reports — is not in force.
What is in force are two separate things: the credit bureaus’ own voluntary policies (still active), and a growing list of state laws (some now contested). Those two layers, not the vacated federal rule, are what govern medical debt on your report today.
What changed and what didn’t between 2022 and 2026?
The biggest changes came from the bureaus themselves, not the government — and those changes are still standing. Here is the timeline that matters:
- July 2022 — Equifax, Experian, and TransUnion stopped reporting paid medical collections, and lengthened the grace period before unpaid medical collections can appear from 6 months to one year. (CFPB)
- April 2023 — The same three bureaus stopped reporting medical collections with an original balance under $500. The bureaus said this took roughly 70% of medical collection tradelines off reports.
- January 2025 — The CFPB finalized a rule to bar medical bills from reports entirely.
- July 2025 — A federal court vacated that rule. It never took effect.
- October 2025 — The CFPB issued an interpretive rule arguing the FCRA preempts state medical-debt laws, putting several state protections into legal limbo.
What didn’t change: the 2022 and 2023 bureau policies are still active. Paid medical collections and sub-$500 medical collections still don’t appear on standard reports, and unpaid medical collections still get a one-year runway before they can show up. Important caveat: these are voluntary bureau policies, not law, so they could be revised. That’s the gap causing most of the confusion right now.
Is medical debt still allowed on your credit report in 2026?
Yes — but narrowly. An unpaid medical collection of $500 or more can still appear on your report, and only after that one-year grace period. When it does appear, the FCRA requires it to be shown in coded form that does not identify your provider, your diagnosis, or the nature of the treatment. In practice, that means the large medical debts are the ones still capable of affecting your file; the small and paid ones generally are not.
This is also why context matters so much for medical debt: how long any negative item lasts, and whether it’s even reportable, changes the math on what’s worth acting on. If you want the general rules on aging items, see our guide on how long negative items stay on a credit report.
How do credit scores treat medical collections now?
It depends on which scoring model a lender pulls. Newer models discount medical collections; older ones — still the most widely used — do not treat them as gently. According to FICO’s own consumer education:
| Scoring model | How it handles medical collections |
|---|---|
| FICO 8 (most widely used by lenders) | Counts collections; ignores any with an original balance under $100. Does not distinguish medical from other collections. |
| FICO 9 | Weighs medical collections less than non-medical, and ignores paid collections. |
| FICO 10 T | Similar reduced weight for medical collections. |
| VantageScore 3.0 / 4.0 | Ignore paid collections; 4.0 further reduces the impact of medical collections. |
The catch: many lenders still pull FICO 8, so a large, unpaid medical collection can still weigh on the score a lender actually sees. How much it moves any individual score depends on the rest of your file — results vary. For a plain-English breakdown of the two model families, see the difference between FICO and VantageScore.
Mortgages are a bright spot. Freddie Mac’s Single-Family Seller/Servicer Guide (Bulletin 2023-16) excludes medical collections from “adverse or derogatory” credit on manually underwritten loans — so borrowers generally are not required to pay off medical collections to qualify for a Freddie Mac loan.
Which states limit medical debt on credit reports?
At least 15 states have passed their own laws restricting medical debt on credit reports, according to consumer-law trackers as of early 2026: California, Colorado, Connecticut, Delaware, Illinois, Maine, Maryland, Minnesota, New Jersey, New York, Oregon, Rhode Island, Vermont, Virginia, and Washington.
The complication: in October 2025 the CFPB issued an interpretive rule claiming the FCRA preempts these state laws, and industry groups have sued to overturn some of them (Colorado’s, for example). That means a protection on your state’s books today could be contested tomorrow. Because this is genuinely in motion, confirm your current state law before you rely on it — and treat any single article, including this one, as a snapshot rather than the final word.
Can you dispute medical debt on your credit report?
Yes. The FCRA gives you the right to dispute any item you believe is inaccurate or unverifiable — medical collections included — and the credit bureau must investigate, typically within 30 days. Medical debt is unusually prone to errors: duplicate collections, bills your insurer should have paid, balances that don’t match, or amounts under $500 that should already be off your file. The Federal Trade Commission explains the dispute process step by step.
To be clear about what a dispute does and doesn’t do: disputing lets you challenge inaccurate or unverifiable information and have it reviewed. It is not a guarantee that any item comes off, and no honest service can promise a specific score change — results vary with the accuracy of the item and how the furnisher responds. Our walkthrough on how to dispute credit report errors covers the mechanics, and if you’re weighing whether to settle first, see pay collections or wait.
What should you do about medical debt on your report?
Start by confirming what’s actually there, then act only on what’s inaccurate, unverifiable, or shouldn’t be reporting. A practical order of operations:
- Pull all three reports. You’re entitled to free copies — here’s how to check your credit report for free.
- Flag anything that shouldn’t be there — paid medical collections, balances under $500, or items reported before the one-year grace period. Under current bureau policy those generally shouldn’t appear.
- Check accuracy on the rest — wrong balance, wrong date, a bill your insurer should have covered, or a duplicate. These are grounds to dispute inaccurate or unverifiable items.
- Contact the provider or insurer if the bill itself is wrong. Correcting the underlying bill can resolve the reporting at the source.
- Know your state law before you assume an item can or can’t be reported where you live.
- Decide whether to handle it yourself or get help. Some people prefer to work their own disputes; others want a professional to review the file and manage the back-and-forth. If you’d rather have guidance, our credit review and consulting services walk through your reports with you — educational, rules-first, and no promised outcomes.
Whichever path you choose, the principle is the same: medical debt on a credit report is often either already off-limits under current policy or genuinely disputable when it’s wrong. The value is in checking carefully, not in chasing guarantees — because there aren’t any.
This article is educational and reflects the rules as of July 2026. It is not legal or financial advice, and outcomes depend on your individual credit file. Consult the CFPB, the FTC, or a qualified professional for guidance on your specific situation.
Sources
- CFPB — Have medical debt? Anything already paid or under $500 should no longer be on your credit report
- CFPB — Prohibition on Creditors and Consumer Reporting Agencies Concerning Medical Information (Regulation V), final rule
- FTC — Disputing Errors on Your Credit Reports
- FICO (myFICO) — FICO Score Versions
- Freddie Mac — Single-Family Seller/Servicer Guide
- U.S. Census Bureau — Who Had Medical Debt in the United States?
Frequently asked questions
Was medical debt removed from credit reports in 2025?
The CFPB finalized a rule in January 2025 that would have barred medical bills from credit reports, but a federal court vacated it in July 2025, so it never took effect. What remains are the credit bureaus' 2022 and 2023 voluntary changes, which still keep paid and sub-$500 medical collections off standard reports. Results vary by individual file.
Can medical bills still appear on my credit report in 2026?
Yes, but narrowly. An unpaid medical collection of $500 or more can still appear, and only after a one-year grace period, shown in coded form that does not reveal your provider or diagnosis. Paid medical collections and those with an original balance under $500 generally do not appear on standard reports.
Does medical debt hurt my credit score?
It can, depending on which scoring model a lender uses. Newer models such as FICO 9, FICO 10 T, and VantageScore 4.0 weigh medical collections less, while the widely used FICO 8 does not distinguish medical from other collections. Because many lenders still pull FICO 8, a large unpaid medical collection can still affect the score a lender sees. Results vary.
How do I dispute a medical collection on my credit report?
Under the FCRA you can dispute any item you believe is inaccurate or unverifiable with each credit bureau, and the bureau must investigate, usually within 30 days. Look for duplicates, bills your insurer should have paid, mismatched balances, or sub-$500 items that should already be off your file. Disputing lets you challenge inaccurate or unverifiable information; it is not a guarantee of any outcome, and results vary.
Which states limit medical debt on credit reports?
As of early 2026, at least 15 states have laws restricting medical debt on credit reports: California, Colorado, Connecticut, Delaware, Illinois, Maine, Maryland, Minnesota, New Jersey, New York, Oregon, Rhode Island, Vermont, Virginia, and Washington. A 2025 CFPB interpretive rule argues the FCRA preempts these laws and some are being litigated, so confirm your current state law before relying on it.
Do I have to pay off medical collections to get a mortgage?
Generally not for a Freddie Mac loan. Freddie Mac's Single-Family Seller/Servicer Guide (Bulletin 2023-16) excludes medical collections from adverse or derogatory credit consideration on manually underwritten loans, so borrowers typically are not required to pay them off to qualify. Confirm the specifics with your lender, since guidelines and loan types vary.
Sources
- CFPB — Have medical debt? Anything already paid or under $500 should no longer be on your credit report
- CFPB — Prohibition on Creditors and Consumer Reporting Agencies Concerning Medical Information (Regulation V), final rule
- FTC — Disputing Errors on Your Credit Reports
- FICO (myFICO) — FICO Score Versions
- Freddie Mac — Single-Family Seller/Servicer Guide
- U.S. Census Bureau — Who Had Medical Debt in the United States?
