January 10, 2006
Unpaid parking tickets could cost you a loan
Did you know that a small event like not returning a book to a public library could affect your credit score? Of late records of outstanding money for small things like parking tickets and fines, are finding their way to individuals’ credit records. Authorities that are try to retrieve almost $40 billion in unpaid fees, parking tickets and even utility bills; do not have much choice in this matter. They are faced with the tough choice of either trying to clear past-due accounts or raise taxes and cut spending. Since the second alternative is not a very popular choice and can raise the hackles of more than just a few people, the government is left with no choice whatsoever.
However, the only problem with such an approach is that it can taint a person’s credit record credit record to such a point that s/he finds it difficult to make big purchases like a house or a car. So while this may be a legitimate way to get back money that is rightfully owed to it, is the state doing more harm than good in the long run? Msnbc.msn.com reports:
And when you do pay the debt, try to get a letter that agrees to remove the mark from your record. Kevin Howard has tried to do just that. But the city of Houston hasn't budged, which means he'll have to wait seven years until it's finally erased — in 2012.
Read more: Overdue library books impact credit scores
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