Unsafe driving habits can make driving even more dangerous than it already is. Mistakes that you make on the road can affect many different areas of your life. Did you know that harmful driving habits can also have unfortunate financial consequences? A bad driving record may not directly impact your credit score, but there can be many indirect consequences that will lower your score. These negative impacts come from unpaid tickets, fees, and bills that result from lousy driving. Read on to learn more about how bad driving affects your credit score.
Unpaid Tickets Affect Your Credit
No matter how big or small your traffic ticket might be, unpaid traffic tickets don’t disappear. It is essential to keep track of your traffic tickets and pay them on time, even if you don’t consider them a big deal. If you do not pay your traffic ticket on time, the jurisdiction may turn it over to a collection agency, which will affect your credit score. Not only that, but unpaid tickets can also collect interest over time and reduce your tax refunds. That is to say that the longer you wait to pay a traffic ticket, the more significant the financial burden it becomes.
Legal Fees from Bad Driving
Some driving citations, such as a DUI conviction, can lead to costly court fees. In fact, many drivers that defend themselves against DUI charges spend between four and five figures in lawyer costs and other legal expenses. DUI convictions can also become public records. Even if you pay for your DUI charge in full, it still remains on your credit record for seven years. It will also appear on criminal background checks, which could make it challenging to be hired for a new job or even rent an apartment.
The amount of money you owe, or your credit usage, has a significant impact on your credit score. If you are using more than 30% of your available credit for any reason, including to help pay for legal fees or other fines related to bad driving, it will affect your credit score in a negative way.
Unpaid Medical Bills from Accidents
Getting in a car accident can be expensive, especially when medical expenses are involved. If you are found to be at fault in a car accident, you will be held financially responsible for paying the medical bills and other compensation for innocent victims involved in the accident. If you do not have adequate car insurance, you will likely have to pay these expenses out of pocket. These costs can add up tremendously, putting guilty drivers in crushing financial debt. If these costs are never repaid, they will have a significant negative impact on your credit score for a long time. Because payment history and amounts owed have an enormous effect on your credit score, it pays to be a good driver and not be found at fault in a car accident.
Be Careful with Car Loans
If you total your car in an accident, you might find yourself looking to replace it. If you have a car insurance policy on your vehicle, you might be able to get help paying to replace your totaled vehicle. However, if you do not have a comprehensive car insurance policy, you might have to pay out of pocket to buy a replacement vehicle. When this happens, it might be necessary or tempting to take out a loan on a new car.
Although having a car loan could help diversify your credit portfolio, you must be careful when taking out a car loan. It is crucial to make your car loan payments on time since payment history is one of the most critical factors of your credit score. That means it is important to take out a loan that you can afford to pay back over time. It is also good to know that every time you apply for a new loan will result in a hard inquiry on your credit score, which could increase your risk of hurting your score.
How can I fix my bad driving record and improve my credit scores?
If you want to fix your bad driving record, the first thing that you should do is to request a copy of your driving record from your local Secretary of State (as known as DMV in states other than Michigan) and ensure that the driving record is accurate. If you notice any inaccurate information on your record, you should contact the appropriate court and the Secretary of State to correct those entries. Correcting these entries could immediately improve your driving record and eliminate overdue tickets or fines.
Even if your driving record still has many accurate entries, there are still steps you can take to have some of them hidden. Some criminal charges and convictions can be sealed and, in some jurisdictions, expunged. One example is a DUI record. If the record is sealed, it is no longer visible to the public. However, if the record is expunged, it is completely destroyed. In either case, if your record is sealed or expunged, you can answer “no” if you are asked whether you have a criminal conviction.
Another way that you can start to clean up your bad driving record is by taking a defensive driving course. These courses can remove points from your driving record. You can take these classes in person or online. Completing a defensive driving course can be an important first step in cleaning up a bad driving record and improving your credit scores.
Finally, time can help heal your driving record. Bad driving entries on your record, even including DUIs, can usually fall off of driving records after a period of time as long as you keep your driving record clean.
Clearing up your driving record and paying off old traffic tickets and fines can have a huge impact not only on reducing your car insurance but also on raising your credit score. The better you drive, the better off you will be financially. It pays to be a good driver!
Traffic Court Buddy can help!
At Traffic Buddy, we believe that every individual should have access to legal representation for any traffic-related charges. From tickets to forfeiture of vehicles, we make it our mission to help provide all the facts to help ensure you receive the minimum possible penalties for any alleged infraction. If you need traffic court representation, reach out today!