Getting into a car wreck is bad for many reasons, but it can also be bad for your credit score. Even if you were not at fault for the accident, you can end up losing points on your credit score, and the reasons are a bit tricky. Regardless, pay attention to your credit if you happen to crash your car.
Even if your car only received a few scratches, your credit score can take a hit if you don’t take action. Because car accidents are not reported to credit bureaus, the affect on your credit score is indirect. However, if you amass debt as a result of the accident and fail to pay, the debt will be sent to a collection agency, which will wreak havoc on your credit score.
Unfortunately the bad news isn’t over yet. If you’ve been in an accident, you can expect your insurance premiums to go up. If your car was totaled and you need to buy a new car, you will have to pay even higher premiums. Medical bills, when applicable, can further add to your credit problems. Ultimately it is your responsibility to keep up with your credit score and take action as soon as possible. Don’t take your time when it comes to making a claim, or your insurance company can use that as an excuse to deny the claim altogether. Stay safe.
