Applying for credit may be a little less painful because Experian, Equifax and TransUnion are changing how they manage reporting for medical debt in collections. Most major lenders still use older FICO models and even paid medical collection accounts can remain on your credit report for up to seven years. Starting in July, the three companies will automatically remove medical debts that were paid after they were sent to collections. Plus the credit bureaus plan to extend the timeline of reporting from 180 days after a medical bill has been sent to collections to one full year. This gives consumers time to deal with medical debt without it impacting their credit scores.