Most medical debts are being removed from credit reports

In a Nutshell

Equifax, Experian and TransUnion say nearly 70% of medical collection debt is expected to be removed from consumers’ credit reports.

The three major credit bureaus say they expect to strip nearly 70% of medical collection debt from consumers’ credit reports, providing some relief to tens of millions of people whose credit scores may have taken a hit from unpaid healthcare bills.

The credit-reporting firms — Equifax, Experian and TransUnion — say consumer credit reports will no longer include medical debt that was paid after it was sent to collections. The changes took effect July 1, 2022.

This is a big deal since medical collections can currently stay on your credit reports for up to seven years, even if you eventually pay.