Car accidents can devastate you physically, emotionally and financially. Many people worry about the impact of a motor vehicle accident on their credit score.
Fortunately, in most cases, a car accident alone will not directly impact your credit, but the indirect effects can significantly affect your score.
Medical bills, lost wages and credit score
If you have to miss work due to your injuries from a car accident, you may struggle to pay your bills, leading to missed payments and late fees. Late payments on loans, credit cards and other bills can negatively impact your credit score. By contacting your creditors and letting them know your situation, you might work out a payment plan for your debts.
Medical bills resulting from a car accident should not impact your credit score. In most cases, medical providers do not report payments to credit bureaus. However, if you fail to pay your medical bills and the provider sends them to collections, this may negatively affect your credit score. Therefore, it is essential to make sure you pay your bills or arrange a payment plan with your healthcare provider.
Getting compensation from the negligent party
If the other driver was at fault for the accident, you might get compensation for your lost wages, medical bills and other related damages. This usually comes from the driver’s insurance company. This compensation can help you avoid missing payments on your accounts and negatively impacting your credit score.
It is essential to seek compensation from the other driver’s insurance provider if you were not at fault to cover your damages and avoid negatively impacting your credit score.