Do unpaid medical bills affect your credit score?

Yes, unpaid medical bills can affect your credit score, but not in the way most people assume. As of 2023, the three major credit bureaus—Equifax, Experian, and TransUnion—stopped including paid medical collection accounts on credit reports. Unpaid medical collections under $500 are also excluded. However, an unpaid medical bill over $500 that goes to a collection agency can still appear on your report and lower your score.

The situation behind this question often involves a sudden illness or accident that led to unexpected out-of-pocket costs. You may have missed a bill while dealing with insurance appeals or financial hardship. The risk here is moderate: a single medical collection can drop your score by 50 to 100 points, depending on your starting credit profile. If the account is recent and unpaid, it’s a red flag for lenders. Professional review is useful if you have multiple medical collections, a pending lawsuit, or if the debt is older than three years, as state laws on statute of limitations vary.

A reasonable path forward starts with verifying the debt. Request a written validation from the collection agency, including the original provider name, date of service, and amount. If the bill is accurate and you can pay, negotiate a pay-for-delete agreement in writing before sending any money. If you cannot pay, explore hardship programs with the hospital or a nonprofit credit counselor. Avoid paying with a credit card or taking out a high-interest loan—this shifts the problem without resolving it.

Debt relief options like settlement or consolidation depend on your state, the type of debt, your hardship level, the account status, and partner criteria. Not all programs are available everywhere or for every situation.

Before you speak with anyone about your medical debt, consider using the private assessment on our homepage. DebtSense AI can give you a preliminary review of your options based on your specific numbers and state. It’s free, no obligation, and helps you see what might work before you commit to a plan.