Law

What effect does a car accident have on your credit score?

Straight to the point: Your credit score is unaffected by an automobile accident. Due to the fact that the credit bureaus do not record car accidents, they do not directly affect your credit score. The only debt included in your credit score is that associated with credit accounts and public documents (for example, credit cards, mortgages, auto loans). If you don’t make your debt payments following a car accident, this will negatively affect your credit rating. Your credit score could be indirectly impacted by an automobile accident.

After a car accident, we can help you discover medical care that won’t harm your credit while your case is pending, and that can be paid for with money from your settlement to help you avoid credit problems. This implies that until you receive compensation, you wouldn’t be required to pay for your medical expenses out of pocket. Make sure that the carelessness of a careless driver doesn’t negatively impact your financial future by speaking with a competent Columbia City auto accident lawyer.

How Can a Car Accident Affect My Credit Score?

After an automobile accident in South Carolina, insurance companies will start processing claims and costs. Medical expenses after a car accident can mount up quickly. Your monthly payments for your motor loan and insurance will also keep mounting. Your credit score may suffer if you cannot pay such expenses, which could negatively influence you. The following are some ways that vehicle accidents might adversely affect your credit score:

  • Car Insurance Can Go Up – The collision may result in a rise in your auto insurance rates. Insurance firms could increase your risk, which would raise your rate. Buying a new vehicle may raise your premium if the accident severely damaged your old one.
  • Buying a new vehicle may raise your premium if the accident severely damaged your old one.
  • Home insurance rates may rise Bad credit can increase interest rates and make it harder to secure a house loan.
  • Medical Costs – Injuries sustained in car accidents may lead to impairments or prolonged hospital stays. You might end up paying thousands of dollars in medical costs, which could wreck your finances and credit, depending on how prolonged and expensive the subsequent treatment is.
  • Costs of Auto Repair – It can be expensive to repair or replace an automobile, especially when you don’t plan to. This may necessitate expensive up-front or ongoing payments.

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