Car Accidents Can Affect Your Credit Score
It is not uncommon for people to experience a worse credit score after an accident and most people have no idea why it happens.
In this blog, we are going to explore how car accidents can affect your credit score.
Table of contents:
- A lower credit score due to a car accident
- Is it possible for an accident to hurt your credit score?
- How does a car accident damage my credit score?
- Ways you can prevent a credit score drop from happening
- Get chiropractic treatment at Arrowhead Clinic
A Lower Credit Score Due to a Car Accident
Being in a car accident is a traumatic experience.
It is definitely something that you never want to experience in your life.
Unfortunately, however,
You’re likely to experience some sort of crash at some point in your life.
Whether it be in the early days or the later days of life.
The last thing you want it to effect, however, is your credit score.
You may also be thinking, How Soon After a Car Accident Should I See a Chiropractor?
Is it Possible for an Accident to Hurt Your Credit Score?
Getting straight to the point: yes.
It is possible for a car accident to do a little damage to your credit score.
It is not uncommon for people to experience a worse credit score after an accident and most people have no idea why it happens.
It is a hard thing to realize, especially after a traumatic event such as a car crash.
It's even harder if the crash wasn’t your fault!
With this in mind, there is probably a larger question on your mind.
And that is:
How Does a Car Accident Damage my Credit Score?
The largest culprit when it comes to damaged credit scores as a result of an accident...
Is health insurance.
Let me explain.
So, when you’re recovering from the accident you’re insurance companies are going to start processing claims and expenses.
One of the ways that medical bills can become an issue is when they start coming in before the accident bills.
Your auto insurance is not going to cover the medical bills before the accident bills and, as a result, put them to the side.
Your medical insurance company is not going to sit around waiting for these bills so your bills may be routed to a collection agency…
Damaging your credit score.
Another way medical bills can mess with your credit score in an accident is if the providers are reluctant to deal with your health insurance broker.
Although this might sound a little off. It is not uncommon.
Sending bills through a health insurance broker can be a pain and many providers would rather send them to the auto insurance broker – resulting in delays as mentioned above.
Ways You Can Prevent a Credit Score Drop From Happening
As you can see, there are a few ways that your credit score can be damaged.
However, there are a few ways you can prevent this from happening.
Obviously, the main way you can prevent this is to insist on the medical bill being paid first to your health insurance broker.
This will prevent any delays and resulting issues.
If they won’t or can’t, it might be time to get a lawyer involved.
The second way you can prevent this is a bit simpler.
Pay for your deductibles as soon as possible.
This will prevent those expenses turning into collectibles.
Get Chiropractic Treatment at Arrowhead Clinic
Car accidents and your credit score are (unfortunately) related.
It is important to make sure that having an accident won’t result in damage to your credit score.
Because it can happen if you’re not careful.
When you’re getting medical attention, always make sure the health insurance is used first and pay any deductibles before they become collectibles.
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Next Blog: 5 Easy Steps you can Take to Prevent an Auto Accident
