Medical Debt & Credit Reports

Medical debt under $500 on your credit report — what the rule actually means

Small medical collections are supposed to be excluded from credit reports. Here's how the rule works and how to check whether it covers a bill on your report.

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Medical debt under $500 and your credit report

If you have a small medical collection on your credit report, it may not belong there. The three nationwide credit bureaus — Equifax, Experian, and TransUnion — voluntarily stopped reporting certain medical collections. Understanding which of your bills these rules cover can help you see whether a particular item should still be appearing at all.

This guide explains the rules in plain English. It is general information, not legal or credit-repair advice. The goal is simply to help you understand whether a specific medical item on your report may fall under one of these policies.

The under-$500 rule

Since April 2023, the three major credit bureaus have voluntarily excluded medical collection accounts with an original balance under $500 from consumer credit reports. This was an industry policy change, not a federal law, and it remains in effect.

Original balance matters, not the current balance The threshold generally looks at the original amount of the collection. Paying a $600 bill down to $400 does not necessarily bring it under the rule, because the original balance was above $500.
It is a voluntary policy Because the bureaus adopted this voluntarily, it is worth confirming that a small medical collection has in fact been removed. If it is still showing, that may be worth checking.

Paid medical collections

Separately from the dollar threshold, the bureaus also voluntarily remove paid medical collections from credit reports, regardless of the amount. If you have paid a medical collection and it is still appearing on your report, that may be worth confirming with the bureau.

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How to check your own report

1
Pull your reports for free

Get your report from all three bureaus at AnnualCreditReport.com — the official free source. Avoid sites that require you to open a paid account.

2
Look for medical collections

Identify any item marked as a medical collection. Note the original balance and whether it has been paid.

3
Compare against the rules

If the original balance was under $500, or the collection has been paid, it generally should not be appearing under the bureaus' current policy.

4
Understand the underlying bill first

Before disputing anything, it helps to understand what the underlying medical bill actually says. That is what our free overview is for.

One important distinction: these rules govern whether a medical debt appears on your credit report. They do not change whether you legally owe the debt, and they do not stop a provider or collector from contacting you about it. Those are separate questions.

Common questions

Does paying a $600 bill down to $400 remove it?

Generally no. The rule typically looks at the original balance, which in this case was above $500. Partial payment does not usually change that.

The collection is under $500 but still showing. What now?

Because the bureau policy is voluntary, items sometimes remain. Under the Fair Credit Reporting Act you have the right to dispute information you believe is inaccurate. It may be worth understanding the underlying bill first.

Do you remove items from my credit report?

No. We help you understand what a medical bill says and whether a charge may be worth questioning. We are not a credit-repair service and we do not contact bureaus on your behalf.