// 10 — the 2023 rule change

$500 THRESHOLD

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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 amountAppears on report?
Under $500No — excluded entirely
$500 or moreYes — appears after 180-day grace period
Any amount (paid)Removed within 45 days of payment

What to do if a sub-$500 collection appears

  1. Verify the amount. Pull your credit report from annualcreditreport.com and confirm the collection amount.
  2. Dispute immediately. Cite the $500 exclusion rule. The bureau must remove it within 30 days.
  3. Send the dispute to all three bureaus. One may have removed it but another hasn't.
  4. 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]