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How can a car accident affect your credit score?

On Behalf of | May 1, 2023 | Car Accidents

Even safe drivers in New Mexico can get into an accident. This can be devastating and leave you dealing with personal injury and property damage. However, there’s another concern you have to face from an accident: your credit score can be affected because of these factors.

Large medical bills

Car accidents can affect your credit score if you are left with large medical bills after suffering serious injuries. Even if you were not at fault for the collision, you may have to pay for medical treatment. Things are even worse if you don’t have health coverage or the hospital and medical professionals you see don’t take your insurance. You might even end up having your medical bills go into collections if you can’t pay, which can cause your credit score to nosedive.

Time off work

After a car accident, you might have to take time off from work to recover from your injuries. However, even if you escape physically unscathed, if the accident was your fault, you might have to miss work if the other party files a lawsuit against you. This can lead to financial hardship and an inability to pay your bills especially if you are found liable for someone else’s injury and damages.

Car repairs

If your vehicle is damaged in a car accident, it can cost a few hundred dollars or significantly more to repair. In the latter situation, your credit score can suffer. You might have to take out your credit card to pay such a large bill and potentially spend more than the recommended 30% of your total credit utilization ratio, which will cause your credit score to dip.

No one expects their credit to be negatively impacted by a car accident. Being as careful as possible while driving might help you avoid these issues.


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