Impact Of Having an Accident on Your Credit Score

Having an accident will not have a direct impact on your credit score because credit report does not contain information about various details of about you which includes car accidents.  A credit report only contains information pertaining to credit and debt.  This information is usually provided by your creditors, businesses that give you loans and other public records that involve financial transactions such as debt, monetary obligation is, bankruptcy and tax liens.

Judgments passed by a federal court pertaining to financial matters such as a bankruptcy filing or being sued for non-payment and subsequently being ordered by the court to pay damages also those in the public records.  While an accident will not get reported on your credit report directly there are two possible ways in which an accident may affect your credit score.  If there were any medical bills involved that the insurance company did not cover resulting from the accident because of which you were required to pay a certain amount of money but failed to do so it is possible that the un-paid some of money may be sold to a collection agency.

All collection agencies are required to report to the National credit bureaus on the collection accounts that they are trying to recover.  The credit bureaus would receive notice of your unpaid debt through the collection agency in this manner .  If a court case resulted due to the accident that you were involved in and you were ordered by the court to pay certain damages to a third party then this public record could also appear on your credit score as death.  If you are unsure as to whether or not your accident has had an impact on your credit score you can order your credit report from any of the National credit bureaus for get a free copy from www.annualcreditreport.com.  Once you have reviewed your credit report you will be in a better position to judge as to what other actions you may need to take.