Medical Debt on Your Credit Report in 2026 — What Was Removed, What Still Shows, and Exactly What to Do
The situation is more complicated than most articles report. Here is the accurate picture: The CFPB’s broad medical debt rule was vacated by a federal court in July 2025 — it is no longer enforceable. However, two important voluntary bureau changes from 2023 are still in effect: (1) all paid medical collections are removed regardless of amount, and (2) all unpaid medical collections under $500 are removed. Unpaid medical debt of $500 or more can still appear on your report in most states. 15 states have their own laws banning medical debt from credit reports — but those state protections are now being challenged by a federal preemption argument. This guide gives you the full, accurate picture for 2026.
About 100 million Americans carry medical debt. If you are one of them, the federal government just made your situation worse — twice. First by allowing a rule that would have protected you to be struck down. Then by trying to block the states that stepped in to protect you.
The story of medical debt and credit reports in 2026 is not the clean “medical debt removed” narrative that circulated widely in 2024 and early 2025. The reality is a patchwork of voluntary bureau changes, vacated federal rules, state laws, federal preemption arguments, and ongoing litigation — and where you stand depends heavily on where you live and how much you owe.
This is the most accurate and complete guide to medical debt and credit reports available for 2026. Read every section before deciding what action to take.
What Actually Happened — The Full 2026 Timeline
The three nationwide credit bureaus — Experian, Equifax, and TransUnion — jointly announced that paid medical debts, medical debts less than a year old, and medical debt under $500 would no longer be included on consumers’ credit reports. These were voluntary industry decisions — not required by law.
The three major credit bureaus — Equifax, Experian, and TransUnion — voluntarily removed medical collections under $500 from reports in 2023, and removed paid medical collections regardless of amount. These voluntary changes remain in effect today.
In January 2025, the Consumer Financial Protection Bureau (CFPB) finalized a rule that would have removed virtually all medical debt from American credit reports. This rule would have gone far beyond the voluntary bureau changes — eliminating even large unpaid medical collections from reports entirely.
Six months later, a federal court vacated that rule. The ruling created significant tension in the regulatory space that Congress may need to resolve. The practical result: unpaid medical debt over $500 can still be reported to credit bureaus. Judge Sean Jordan of the Eastern District of Texas voided the Biden-era CFPB rule that banned the practice of including medical debt on credit reports. The CFPB under the new administration had joined the motion to vacate rather than defend the rule.
In late October, the Consumer Financial Protection Bureau released what is known as an interpretive rule, stating that laws prohibiting medical debt reporting in 15 states are preempted by the Fair Credit Reporting Act. This means the federal government is now arguing that states do not have the authority to protect their own residents from medical debt on credit reports.
The voluntary changes from 2022 to 2023 remain intact: paid medical collections are removed regardless of the balance, unpaid medical collections under $500 are removed, and medical debt has a 12-month grace period before appearing on reports. State medical debt bans remain on the books but face an ongoing preemption legal battle.
The regulatory future of medical debt credit reporting at the federal level is uncertain. Congress may need to act to resolve the tension between consumer protection goals and the FCRA’s structure. State laws continue to be the strongest protection for consumers in the 15 states that have enacted them.
What Medical Debt Was Removed — The 2023 Bureau Changes Still in Effect
Despite the vacated federal rule, two important protections remain in effect because they were voluntary industry decisions made by the bureaus — not part of the CFPB rule that was struck down:
The Voluntary Bureau Changes Are Independent of the Vacated Rule
The three bureaus made these changes on their own initiative before the CFPB rule was finalized, and they remain in effect. The court ruling blocked the CFPB from enacting a similar federal rule in the future, but it had no direct impact on the bureaus’ voluntary decisions. This is important: even though the CFPB rule is gone, your paid medical collections should still be removed and your unpaid collections under $500 should still be removed. If they are not, you have the right to dispute.
What Medical Debt Can Still Appear on Your Report in 2026
About 15 million Americans carry $49 billion in medical debt on their credit reports. Here is what can still legally appear on your credit report in most states as of June 2026:
- Unpaid medical collection accounts of $500 or more — these can still be reported to the bureaus and remain on your credit report for up to 7 years from the date of original delinquency
- Medical debts where the status is disputed — if there is a question about whether the insurance company should have paid and the account sits in a gray area, it may still show
- Medical debts reported before the voluntary 2023 changes — if any older accounts slipped through the bureau cleanup, they may still be showing erroneously
- Any medical debt in non-protected states that remains unpaid above $500 — can continue to appear until the 7-year clock expires
Medical Billing Errors Are Extremely Common — Check Everything
Medical debt on credit reports is particularly prone to errors. Common problems include: insurance payments not being properly applied before the debt went to collections, duplicate billing for the same service, incorrect amounts due to billing code errors, and debts reported before the 12-month grace period expired. The CFPB estimates that a significant portion of medical debt on credit reports reflects billing errors or insurance disputes rather than actual unpaid bills. Always verify the accuracy of any medical collection before paying it — paying an inaccurate collection can be worse than disputing it.
How Medical Debt Affects Your Credit Score in 2026
The impact of medical debt on your credit score in 2026 depends on two things: which debts are actually on your report after the bureau voluntary changes, and which scoring model is used to evaluate your file.
✅ Zero Impact — Already Removed
Paid medical collections and unpaid collections under $500 have been removed by the bureaus and have no score impact under any model. These are gone from your report.
❌ Still Impacts Score — Under Classic FICO
Remaining unpaid medical collections of $500+ are still factored into Classic FICO 8 and the older mortgage models (FICO 5, 2, 4) currently used by many lenders. These can significantly drop your score.
🏛️ Protected Borrowers — Under VantageScore 4.0
Under VantageScore 4.0 — now approved for all Fannie Mae, Freddie Mac, and FHA mortgages — medical collections are ignored entirely. If your lender uses VantageScore 4.0, remaining medical debt has no mortgage score impact.
The scoring model your lender uses in 2026 has become critically important for borrowers with remaining medical debt. Under Classic FICO — still used by many lenders — an unpaid medical collection of $500+ on your report can drop your score 50 to 100 points and significantly affect your mortgage rate or approval. Under VantageScore 4.0 — now approved for mortgages — medical collections are ignored entirely, meaning the same borrower might qualify at a far better rate with a lender using the new model.
This is a concrete reason to ask your lender which scoring model they use before applying for a mortgage in 2026. For borrowers with remaining medical collections, the difference between lenders using Classic FICO vs VantageScore 4.0 can be the difference between approval and denial — or between a 7% rate and an 8% rate.
The 15 States With Their Own Medical Debt Credit Report Bans
While federal protection was stripped away, fifteen states ban medical debt from credit reports, including California, Colorado, Connecticut, Delaware, Illinois, Maine, Maryland, Minnesota, New York, New Jersey, Oregon, Rhode Island, Vermont, Virginia, and Washington State.
Nine of the fifteen recent state statutes on medical debt reporting go into effect this year or on January 1, 2026. The remaining statutes were effective in either 2023 or 2024.
| State | Law Status | Protection Level | Effective Date |
|---|---|---|---|
| California | Active | Prohibits medical debt on credit reports entirely | 2024 |
| Colorado | Active | Prohibits credit harm from medical debt | August 2023 |
| Connecticut | Active | Prohibits health providers from reporting medical debt | July 2024 |
| Delaware | Active | Prohibits furnishing medical debt to CRAs | October 2025 |
| Illinois | Active | Limits CRAs from reporting medical debt | January 2025 |
| Maine | Active | Limits furnishing and reporting of medical debt | June 2025 |
| Maryland | Active | Bans hospitals from reporting medical debt to CRAs | 2025 |
| Minnesota | Active | Restricts medical debt on credit reports | 2024 |
| New Jersey | Active | Bans medical debt on credit reports | 2024 |
| New York | Active | Prohibits medical debt on credit reports | 2023 |
| Oregon | Active | Prohibits providers from reporting medical debt to CRAs | 2025 |
| Rhode Island | Active | Restricts medical debt credit reporting | 2024 |
| Vermont | Active | Bans medical debt on credit reports | 2024 |
| Virginia | Active — delayed | Limits medical debt reporting and interest | July 1, 2026 |
| Washington | Active | Prohibits collection agencies from reporting medical debt | 2025 |
These State Protections Are Under Legal Challenge — Check Current Status
In October 2025, the CFPB issued an interpretive rule claiming federal law overrides 15 state protections. Debt collector trade groups are already suing to strike down state laws using this argument. The legal battle is ongoing in 2026. If you live in one of these 15 states, your protections may be stronger than the federal baseline — but the situation is evolving. Contact your state attorney general’s office or a consumer law attorney for the most current status of your state’s protections.
The Federal Preemption Battle — Your State Rights Under Threat
This is the part of the medical debt story that most coverage misses. Even for residents of the 15 protected states, the situation is not settled.
The court found that the rule exceeded the CFPB’s statutory authority. Despite comments in the decision, the ruling has no direct impact on state laws. However, the CFPB then took a separate aggressive step.
In late October, the Consumer Financial Protection Bureau released what is known as an interpretive rule, stating that laws prohibiting medical debt reporting in 15 states are preempted by the Fair Credit Reporting Act. This is a significant escalation: the federal government is not just declining to protect consumers — it is now attempting to strip away the state protections that filled the federal void.
Credit bureaus voluntarily removed debts under $500 and paid debts — but can reverse this anytime. The entire landscape of medical debt credit reporting protection in the United States in 2026 rests on voluntary industry decisions that could be reversed and state laws that are being actively challenged. This is why understanding your FCRA dispute rights — which are not under challenge — is more important than ever.
How to Check If Medical Debt Is Still on Your Report — Right Now
Pull Your Free Reports From All 3 Bureaus
Go to AnnualCreditReport.com — this is the only federally authorized free credit report source. Pull your report from Equifax, Experian, and TransUnion separately. Each bureau maintains its own file and the same medical collection may be on all three, two, or only one of them. You need to check each one individually.
Search for Medical Collection Accounts
In each report, look for accounts listed under “collections” or “negative accounts.” Medical collections are typically identified by the name of the collection agency (not the hospital) and may reference a healthcare provider in the account details. Look for any account with a balance that traces back to a medical provider or hospital. Write down: the collection agency name, the original creditor name, the balance listed, the date of first delinquency, and whether it is marked as paid or unpaid.
Check Each Medical Collection Against the Removal Criteria
For each medical collection you find, ask: Is it paid? (Should be removed.) Is the balance under $500? (Should be removed.) Is it less than 12 months old from the original delinquency date? (Should not have been reported yet.) Is it past its 7-year window? (Must be removed under FCRA.) Is it in a state where medical debt reporting is banned? If any of these apply, you have grounds for a dispute.
Check Your Credit Score From Multiple Sources
After reviewing your report, check your credit score from both a Classic FICO source (Experian’s free account shows FICO Score 8) and from Credit Karma (which shows VantageScore from TransUnion and Equifax). If there is a significant gap between your FICO score and VantageScore — with VantageScore being notably higher — this often indicates medical collections that VantageScore ignores but Classic FICO still penalizes. This gap is useful information when shopping for a mortgage lender in 2026.
How to Dispute Medical Debt on Your Credit Report — Step by Step
As of 2026, the regulatory future of medical debt credit reporting at the federal level is uncertain — which is exactly why your existing FCRA dispute rights are more important than ever. Here is how to use them:
Gather Documentation Before Filing
Before disputing, gather: your Explanation of Benefits (EOB) from your insurer showing what was paid, any receipts showing the debt was paid, any correspondence from the original medical provider about the debt, and proof of the original service date to verify the 7-year reporting window. The stronger your documentation, the faster the dispute is resolved in your favor.
File Disputes Online With All Three Bureaus
File your dispute directly with each bureau where the medical collection appears. Do not rely on disputing with only one bureau — medical collections often appear on multiple reports. Equifax: equifax.com/personal/disputes. Experian: experian.com/disputes. TransUnion: transunion.com/credit-disputes. Clearly state the reason for your dispute: “This account is a paid medical collection and should have been removed under the bureaus’ 2023 voluntary policy” or “This balance is under $500 and should have been removed under the bureaus’ 2023 voluntary policy.”
Request Debt Validation From the Collection Agency
Under the FDCPA, you have the right to request debt validation from any collection agency. Send a written request via certified mail within 30 days of first contact asking them to verify the debt is accurate, belongs to you, and that the original creditor information is correct. If the collection agency cannot validate the debt, they must stop collection efforts and the bureau must remove the account. This is a powerful tool for medical debt that may have billing errors.
Follow Up Within 30 to 45 Days
Bureaus are required to investigate disputes within 30 days under FCRA (sometimes 45 days if you provide additional information). If the dispute is resolved in your favor, the item is removed. If it is not resolved in your favor, the bureau must provide you with the results and you have the right to add a 100-word statement to your report explaining the dispute. If you believe the bureau’s investigation was inadequate, you can escalate to the CFPB’s complaint portal at consumerfinance.gov/complaint.
Medical Debt and Your Mortgage Application in 2026
For homebuyers and refinancers, medical debt has two distinct effects in 2026 depending on which scoring model your lender uses:
| Scoring Model | Medical Collections Treatment | Impact on Mortgage Score |
|---|---|---|
| Classic FICO (5, 2, 4) Traditional mortgage models |
Medical collections factored in same as other collections | Unpaid medical collections $500+ hurt your mortgage score significantly |
| FICO 9 Newer but not yet universal |
Paid medical collections ignored. Unpaid factored in with reduced weight. | Paid collections removed. Unpaid still count but less severely. |
| FICO 10T Now approved for mortgages |
Medical collections still factored in. Reduced weight vs Classic FICO. | Remaining unpaid medical debt still has some negative impact |
| VantageScore 4.0 Now approved for all mortgages |
Medical collections ignored entirely — paid or unpaid | Zero impact from medical collections regardless of amount |
The Most Important Mortgage Strategy for Medical Debt Borrowers in 2026
If you have remaining unpaid medical collections of $500 or more, ask your potential lender directly: “Do you use Classic FICO, FICO 10T, or VantageScore 4.0 for mortgage underwriting?” A lender using VantageScore 4.0 will ignore your medical collections entirely. A lender using Classic FICO will factor them in heavily. The lender you choose in 2026 can determine whether medical debt affects your mortgage qualification — making this question one of the most valuable you can ask before applying. For more on the new scoring models, see our VantageScore 4.0 guide and our FICO 10T guide.
See When Medical Collections Fall Off Your Report
Use our free Credit Rebuild Timeline Calculator — enter your negative items and their dates to see exactly when each medical collection will fall off your report and when your score will recover.
Frequently Asked Questions
Was medical debt removed from credit reports in 2026?
The three major credit bureaus — Equifax, Experian, and TransUnion — voluntarily removed medical collections under $500 from reports in 2023, and removed paid medical collections regardless of amount. These voluntary changes remain in effect. However, the CFPB’s broader rule that would have removed all medical debt was vacated by a federal court in July 2025. Unpaid medical debt of $500 or more can still appear on reports in most states.
What happened to the CFPB medical debt rule?
In January 2025, the Consumer Financial Protection Bureau finalized a rule that would have removed virtually all medical debt from American credit reports. Six months later, a federal court vacated that rule. The court found it exceeded the CFPB’s statutory authority under the Fair Credit Reporting Act. The current CFPB under the Trump administration had joined the motion to vacate rather than defend the rule. As of June 2026, this rule is no longer enforceable.
What medical debt can still appear on my credit report in 2026?
Unpaid medical collection accounts of $500 or more can still appear on your credit report in states without their own medical debt bans. The bureaus voluntarily removed paid medical collections and unpaid debts under $500, but those changes apply only to those two specific categories. Remaining unpaid medical bills of $500 or more can stay on your report for up to 7 years from the date of original delinquency.
Which states have banned medical debt from credit reports?
Fifteen states ban medical debt from credit reports, including California, Colorado, Connecticut, Delaware, Illinois, Maine, Maryland, Minnesota, New York, New Jersey, Oregon, Rhode Island, Vermont, Virginia, and Washington State. However, in late October, the Consumer Financial Protection Bureau released an interpretive rule stating that laws prohibiting medical debt reporting in 15 states are preempted by the Fair Credit Reporting Act. These state protections are being legally challenged. Contact your state attorney general’s office for the most current status.
How do I check if medical debt is still on my credit report?
Pull your free credit reports from all three bureaus at AnnualCreditReport.com. Look for any accounts in the collections section that trace back to a medical provider or hospital. Check each one against the removal criteria: paid collections should be removed, collections under $500 should be removed, and collections past their 7-year window must be removed under FCRA. Dispute any medical collection that should have been removed but is still showing.
Does medical debt still affect your credit score in 2026?
For paid medical collections and unpaid collections under $500 — no, these are removed and have zero score impact. For unpaid medical debt of $500 or more — it depends on which scoring model is used. Under Classic FICO, remaining medical collections still hurt your score significantly. Under VantageScore 4.0 — now approved for all Fannie Mae, Freddie Mac, and FHA mortgages — medical collections are ignored entirely. The scoring model your lender uses determines whether remaining medical debt affects your mortgage qualification.
Can I dispute medical debt on my credit report?
Yes. You have the right to dispute any inaccurate, outdated, or unverifiable information on your credit report under the FCRA. For medical debt specifically, dispute any paid collection still showing, any collection under $500 still showing, any collection past its 7-year window, and any collection with an inaccurate balance due to billing errors or insurance disputes. File disputes online at each bureau’s dispute portal: Equifax.com, Experian.com, and TransUnion.com.
Related Free Tools
Related Guides
- Firstcard — Medical Debt on Credit Reports: What Rules Apply in 2026, May 2026
- Credlocity — CFPB Medical Debt Rule Overturned: What It Means for Your Credit Report, May 2026
- GetOutOfDebt.org — Medical Debt on Credit Reports: Feds Kill Protection, Then Go After States, February 2026
- NCLC Digital Library — The Latest on Keeping Medical Debt Out of Credit Reports
- NCLC — Trump Administration Tries to Block State Safeguards on Medical Debt, October 2025
- CNBC — Trump CFPB Takes Aim at 15 States That Ban Medical Debt on Credit Reports, November 2025
- Berkeley Consumer Law Center — Court Overturns Federal Rule That Keeps Medical Debt Off Credit Reports
- Brownstein — Federal Court Vacates CFPB’s Medical Debt Rule, August 2025
- Congress.gov — An Overview of Medical Debt: Collection, Credit Reporting, and Related Policy Issues
- Stateline — New Trump Administration Rule Could Override State Medical Debt Protections, November 2025