3 Ways an Accident Can Affect a Credit Score
According to Credit.com, a person who has been on an accident can experience missed work due to injuries, be fired as a result of missing work, huge medical bills, car repair bills, and property damage and repair costs.
These are 3 ways an accident can affect a credit score:
- Increase in car insurance premiums
A car accident claim may increase insurance premiums, even if the person was partially at fault.
- Sizable medical bills
Depending on how lengthy or costly the treatment is, a customer may end up owing thousands of dollars in medical bills.
- Repair costs or acquiring a new car
A customer may incur in sizable payments in the event of car repairs or acquiring a new car.
Credit.com shares a few tips that could help a customer protect his finances and credit score in the event of a car accident:
- Emergency fund: A customer should try to save 20% of his paycheck or six month’s worth of expenses.
- Credit cards for emergencies: Set aside a credit card for emergencies only. It is recommended to opt for a credit card that has low interest, no annual fee, and a high credit limit.
- A loan: A personal loan could help with the expenses, and the interest rate will depend on credit score and the lender.
For more credit repair tips, visit www.scoreceo.com/blog.
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