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Protect Your Credit Score: Learn How a Personal Injury Claim Can Impact Your Credit Score

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How Does a Personal Injury Claim Affect Your Credit Score?

When you’ve been injured in an accident, the last thing you want to worry about is how it might affect your credit score. Unfortunately, personal injury claims can have a negative impact on your credit score, but there are steps you can take to protect yourself. In this article, we’ll explore how a personal injury claim can affect your credit score and what you can do to minimize the damage.

What Is a Personal Injury Claim?

A personal injury claim is a legal action taken when someone has been injured due to the negligence or fault of another person or entity. The injured person can file a claim to seek compensation for medical bills, lost wages, and other damages. Personal injury claims can be filed against individuals, businesses, or government entities.

How Does a Personal Injury Claim Affect Your Credit Score?

When you file a personal injury claim, it can have a negative impact on your credit score. This is because the claim is reported to the credit bureaus, which can lower your score. The amount of the impact depends on the severity of the injury and the amount of the claim.

The most significant impact on your credit score is when you are awarded a settlement or judgment from the court. This is because the amount of the award is reported to the credit bureaus. If the amount is large, it can have a significant negative impact on your credit score.

What Can You Do to Protect Your Credit Score?

If you’ve been injured in an accident and are considering filing a personal injury claim, there are steps you can take to protect your credit score.

First, you should contact a qualified personal injury attorney. An experienced attorney can help you understand the legal process and ensure that your rights are protected. They can also help you negotiate a settlement that is fair and reasonable.

Second, you should consider setting up a payment plan with the court or the other party. This will help you avoid a large lump sum payment that could have a negative impact on your credit score.

Finally, you should consider setting up a trust to manage the settlement or judgment. This will allow you to receive the money without it being reported to the credit bureaus.

Conclusion

A personal injury claim can have a negative impact on your credit score, but there are steps you can take to protect yourself. Contact a qualified personal injury attorney to ensure that your rights are protected. Consider setting up a payment plan or a trust to manage the settlement or judgment. By taking these steps, you can minimize the impact on your credit score.

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