Removing Medical Debt from your Credit Report

Medical collections can be a significant cause of stress and anxiety and can negatively impact your credit score.

A medical collection on your credit report can hurt your credit score and make qualifying for loans and credit cards challenging. Writing a letter to remove medical collection from your credit report is crucial for those suffering from medical debt’s effects. 

This blog post discusses how to deal with medical collections on your credit report. We will also provide a sample letter for requesting removal of medical collections from your credit report.

How do Medical Collections Affect Credit Score?

When medical bills go unpaid, they can be sent to collections, negatively affecting your credit score. A medical bill in collections can remain on your credit report for up to seven years, even if you pay it off.

Late or missed payments on medical bills can also hurt your credit score. It’s crucial to address medical bills promptly and negotiate payment plans if you’re unable to pay the full amount upfront. Many medical providers offer assistance programs for those who qualify.

If you do end up in collections, try to bargain a payment plan or settlement to minimize the impact on your credit score. However, settling for less than the total amount owed could still hurt your credit score. You can also check your credit report regularly to ensure accuracy and dispute any errors that may negatively impact your score.

Ultimately, staying on top of medical bills and managing debt responsibly can help protect your credit score.

How do Medical Collections appear on Credit Reports?

Medical collections can appear on credit reports when a healthcare provider or medical facility sends an overdue bill to a debt collection agency. The collection agency then reports the debt to the credit bureaus, which can negatively impact the individual’s credit score.

It is important to note that some credit scoring models treat medical collections differently than others. However, it is still essential to address any medical collections as soon as possible. As they can be retained on a credit report for up to seven years, even if the debt is paid off.

Working with the medical provider or debt collector to establish a payment plan or negotiate a settlement can mitigate the impact on credit scores.

How to Deal with Medical Collections on your Credit Report

If you have a medical collection on your credit report, there are a few steps you can take to deal with it:

Check your credit report for accuracy

Before you do anything else, ensure the medical collection is accurate. Sometimes, medical collections can appear on your credit report by mistake. Check the dates, the amount owed, and the collection agency’s name to ensure everything is correct.

Pay off the debt

If the medical collection is accurate, the best thing you can do is to pay off the debt in as little time as possible. Once you pay off the debt, the collection agency will update your credit report to show that the debt has been paid.

Negotiate with the collection agency

In case you are unable to repay the entire debt amount, you can try to negotiate with the collection agency. Be sure to get any agreement in writing before you start making payments. Many collection agencies are willing to work out a payment plan with you, so you can pay off the debt over time.

Request a Goodwill Deletion

If you have already paid off the debt, you can request a goodwill deletion from the collection agency. A goodwill deletion is when the collection agency agrees to remove the negative item from your credit report as a gesture of goodwill. Be sure to explain your situation and ask politely when making this request.

Letter to Remove Medical Collection Sample

[Your Name]

[Your Address]

[City, State ZIP Code]


[Collection Agency Name]

[Collection Agency Address]

[City, State ZIP Code]

Dear Sir/Madam,

I would like to formally request that you remove the medical collection from my credit report. The collection account is [insert account number or reference number], and the amount owed is [insert amount owed]. The account was originally opened on [insert date].

I understand that the collection account is accurate, and I have already paid the debt in full. As a result, I am requesting a goodwill deletion from your agency.

I would like to explain my situation briefly. [Insert explanation here]. Despite my best efforts, I could not pay off the debt promptly. However, I have since paid off the debt in full. And would greatly appreciate it if you could remove the negative item from my credit report as a gesture of goodwill.

Thank you for your consideration, and I look forward to your response.


[Your Name]

Final Thoughts

Dealing with medical collections can be stressful and time-consuming, but it is crucial to address them to improve your credit score.

Remember to check the accuracy of your credit score, and pay off the debt if possible. You may also negotiate with the collection agency, and request a goodwill deletion if you have already paid off the debt.

A letter to remove medical collection can also be a helpful tool in removing medical collections from your credit report. This allows you to take charge of your financial situation and improve your credit score.

Abir is a data analyst and researcher. Among her interests are artificial intelligence, machine learning, and natural language processing. As a humanitarian and educator, she actively supports women in tech and promotes diversity.

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