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The $500 medical debt threshold
As of 2023, all three credit bureaus (Experian, Equifax, TransUnion) exclude medical collections under $500 from credit reports. This was a voluntary industry change, not a federal mandate — but it applies across all three bureaus.
What this means
| Medical collection amount | Appears on report? |
|---|---|
| Under $500 | No — excluded entirely |
| $500 or more | Yes — appears after 180-day grace period |
| Any amount (paid) | Removed within 45 days of payment |
What to do if a sub-$500 collection appears
- Verify the amount. Pull your credit report from annualcreditreport.com and confirm the collection amount.
- Dispute immediately. Cite the $500 exclusion rule. The bureau must remove it within 30 days.
- Send the dispute to all three bureaus. One may have removed it but another hasn't.
- Follow up if not removed. File a complaint with the CFPB at consumerfinance.gov if the bureau refuses.
Dispute letter for sub-$500 medical collections
[YOUR NAME] [YOUR ADDRESS] [DATE] [BUREAU NAME] [BUREAU ADDRESS] RE: Dispute — Medical Collection Below $500 Threshold Account: [ACCOUNT NUMBER] To Whom It May Concern, I am disputing the above-referenced medical collection account because it is below the $500 threshold for medical debt reporting. All three credit bureaus have implemented a policy to exclude medical collections under $500 from consumer credit reports. The amount of this collection is [$AMOUNT], which is below the $500 threshold. I request that you investigate and remove this account from my credit file within 30 days. Sincerely, [YOUR NAME]