How Medical Debt Affects Your Credit Score

June 20, 2023

Many people get help from a Dallas credit repair company to help fix their credit scores. Their poor or average scores often stem from difficulties in timely bill payments. But what happens if your debt primarily consists of unpaid medical bills? The impact on your credit score can vary depending on the frequency and method of payment. 


If you consistently neglect to pay your medical bills for an extended period, the healthcare provider may enlist the help of a collection agency. This has the potential to affect your credit score. However, it's important to note that this negative impact could take a while to appear on your credit report.

Do you pay your bills with your credit card?

Medical debt can lower your credit score because it shows that you have a history of not paying your bills on time. Your credit score could be significantly impacted if you don't make at least the minimum payment on your credit card bill on time or don't pay off your balance quickly.


Moreover, using your credit card to pay a high-cost medical bill could change your "credit utilization ratio." This ratio is an important part of how your credit score is calculated. It's basically the percentage of your total available credit that you're using at any given time. If you use a large portion of your available credit to pay for medical expenses, it could lower your credit score.

How long will medical debt reflect on a credit report?


Whether your medical debt appears on your credit report depends on how the three main credit bureaus receive information about your debt. However, new rules may soon erase 70% of such information from your credit report.


Before, even if you paid off a medical debt that had gone to collections, it could stay on your credit report for as long as seven years. But starting from July 1, 2022, any medical debt that you've fully paid off will be taken off your credit report.


The credit bureaus have also said that unpaid medical debts could take up to a year to appear on your credit report. Also, starting from 2023, any medical debt that's less than $500 won’t be added to your credit report.

Did medical debt lower your credit score?

Our experts here at US Best Credit Solutions are ready to help you fix your credit score. Besides specializing in credit repair, we provide credit education services in Dallas to help keep you debt-free. Plus, our services are backed by a 100% money-back guarantee to give you more confidence. A free consultation awaits you, so contact us today!