Can unpaid medical bills affect your credit?

Yes, unpaid medical bills can affect your credit, but the impact depends on timing and amount. As of 2023, the three major credit bureaus no longer include medical collection debts under $500 on credit reports. Larger unpaid medical bills can appear as collections, which may lower your credit score and remain for up to seven years. However, paid medical collections are also now removed from credit reports, which is a recent change.

If you're asking this question, you likely have a medical bill you cannot pay in full, possibly due to an unexpected illness, job loss, or high deductible. The debt is typically unsecured, meaning no collateral is tied to it, but the hardship is real—medical debt often comes with stress and limited cash flow. The risk level is moderate: while medical collections are treated somewhat less harshly than credit card or loan defaults, they can still block you from getting a mortgage, car loan, or apartment.

Your path forward starts with confirming the bill's accuracy. Request an itemized statement from the provider and check for errors or duplicate charges. If the amount is under $500, it won't appear on your credit report at all. For larger amounts, contact the provider directly to ask about a payment plan or financial assistance—many hospitals offer charity care or sliding-scale options. If the debt has already gone to a collection agency, you can negotiate a pay-for-delete agreement, though this is not guaranteed. Be prepared with your income, monthly expenses, and the exact bill details.

Debt relief options like settlement or consolidation may be available, but eligibility depends on your state, the type of debt, your hardship, whether the account is still active, and the criteria of the relief partner. A professional review can help clarify what applies to you.

For a clear, private starting point, use the DebtSense AI assessment on our homepage. It gives you a preliminary review of your situation without any obligation, so you know your options before speaking with anyone.