Overdue Books Affecting Credit Score
I am sitting here watching the local evening news when a story comes on about the fact that if a library reports your overdue fines to a collection agency you can lose anywhere from 50 to 100 points from your credit score. Wow, that is a lot of points for overdue books!
I only caught a portion of the story (Mommy duties intervened), but what I did catch was an interview with a library director stating something to the effect that in times of budget cuts it is essential that libraries make it know that overdue materials affect the bottom line.
I went searching for some reference to this story, and found an article published today on Kiplinger.com called Boost Your Score that starts with this tidbit:
Pop quiz: Which affects your credit score more, getting married or having overdue library books?
Surprise answer: A library fine that goes to collection can shave 100 points off your credit score — and boost your annual interest payments by hundreds of dollars. But getting married doesn’t affect your score at all unless you co- sign for a loan with your new spouse.
I am not entirely convinced that library fines are even needed in the first place, so my gut reaction to having someone’s credit score ruined by late library books doesn’t sit well with me at all. I might be more sensitive to this as I protect my credit score with a passion ever since I had to work so hard to build it from scratch when I first moved to the USA 9 years ago. None of your credit history follows you across the border (so I discovered, much to my dismay) and I could not get a credit card, car loan or any other other loan to save my soul for several years. A few points off your credit score can make a big difference in loan rate and I am sure that the average citizen watching this news segment did not get a warm fuzzy feeling about libraries learning that we could be the ones to impact their future mortgage rate.