Do Medical Bills Affect Your Credit Score in 2025? Here’s What You Need to Know

When you’re recovering from an illness or injury, the last thing you want to worry about is how a hospital bill might damage your credit. Yet for many, that’s exactly what happens. In 2025, medical debt continues to be a hot-button issue in personal finance, but recent reforms are shifting the landscape. So, do medical bills affect your credit score? Let’s break it down.

What Happens When You Don’t Pay a Medical Bill?

Unpaid medical bills don’t immediately show up on your credit report. Hospitals and clinics typically send several notices and attempt to work with you or your insurance provider first. If the bill goes unpaid for 6 months or more, it may be sent to a collections agency, and that’s when it can hurt your credit.

A collection account can reduce your credit score significantly, making it harder to get approved for loans, mortgages, or even rental housing.

What Changed in 2023 and 2024?

Credit reporting agencies like Equifax, Experian, and TransUnion implemented major changes:

• Medical debt under $500 is no longer reported on credit files.

• There is now a one-year waiting period before unpaid medical bills in collections are reported.

• If you pay off a medical collection, it must be removed from your credit report, rather than simply marked as “paid.”

These changes are designed to reduce the long-term credit impact of unavoidable medical emergencies, but they don’t eliminate all risks.

Can Medical Bills Still Hurt Your Credit in 2025?

Yes, they can — but less than before. Here’s how:

• Large unpaid balances over $500 that go to collections can still appear on your credit report after a year.

• Errors in billing or insurance processing can cause delays, and those delays might push your account into collections even if you were trying to resolve it.

• Not all medical providers report to credit bureaus directly, but collection agencies often do.

How to Protect Your Credit from Medical Debt

If you’re worried about the impact of medical bills on your credit, here are steps you can take:

1. Review every medical bill carefully for errors.

2. Work with your insurance company to understand what is and isn’t covered.

3. Negotiate payment plans directly with your provider before your bill goes to collections.

4. Ask for financial assistance if you qualify.

5. Monitor your credit report regularly to spot any incorrect medical collections.

6. Dispute inaccuracies with credit bureaus immediately.

Final Thoughts on Medical Bills and Credit Impact

So, do medical bills affect your credit score? Yes but in 2025, the impact is more manageable thanks to updated credit reporting guidelines. Still, it’s critical to stay proactive. Understand your rights, communicate with your providers, and act early to avoid collections. Taking control of your medical debt can protect both your finances and your peace of mind.