The three largest credit bureaus in the U.S. announced Friday they would begin removing most medical debt from their reporting process starting in July, meaning many Americans with late or unpaid medical bills could have the stains from those bills wiped off their credit.

The three companies — Equifax, Experian and TransUnion — are responsible for figuring out the credit score used by banks, loan offices and other financial institutions to determine how likely a person is to pay back a loan or debt.

The “significant changes” announced Friday will remove nearly 70% of medical collection debt from consumer credit reports, TransUnion said in a statement.

As of July 1, any paid debt will be wiped from the credit reports of consumers, meaning that any late payments won’t damage their credit.

The credit reporting agencies will also increase the time period before unpaid medical debt will appear on a person’s credit from six months to a year. The extra delay is designed to give people more time to pay back their bills.
And sometime in the first half of 2023, none of the three major credit agencies will include medical debt under $500.
“Medical collections debt often arises from unforeseen medical circumstances. These changes are another step we’re taking together to help people across the United States focus on their financial and personal wellbeing,” said a joint statement provided by Mark W. Begor, CEO Equifax; Brian Cassin, CEO Experian; and Chris Cartwright, CEO TransUnion. “As an industry, we remain committed to helping drive fair and affordable access to credit for all consumers.”