Credit Scores Can Be Affected By Child Support Payments
During divorce, there are many factors that can negatively affect an individual. Child support payments are serious matters and default payments can even land an individual in jail. But there is another problem that arises due to untimely child support payments. Credit scores are also affected. Timely payments can strengthen the credit score and irregular payments can have the opposite effect.
Child support payments are seen with the same importance as mortgage or vehicles by credit companies. Child support reports default payments to credit companies. The credit companies keep a track of individuals with defaults. Default payments have an effect on loans or interest rates.
Individuals who wish to know how the child support system works should consider looking at the specific rules and regulations in the respective states. In some states, child support dues are reported only after a certain time whereas in other states the dues are reported as and when the default takes place.
How do late payments affect credit scores?
There are many reasons why parents miss out on child support payments. They could be between jobs or their income has been reduced or there could be some other reason. One of the things the parents can do during such situations is, inform the court and put a temporary pause on the child support obligation. In cases where the petitions are not filed or the parent fails to take the necessary steps, the missing payments start showing up on the credit scores. Parents who stop receiving child support can sue the other parent and if the former wins then the credit score becomes worse. Child support obligations are very important and its relation with the credit score can be a complex matter.
In any case, it better to hire a lawyer before things go out of hand. An attorney who is experienced in the field of child support obligations and credit scores can provide a better understanding on the matter.
Credit scores are important for getting loans or good interest rates and should therefore never have a negative result. Failure to pay for child support can negatively effect credit scores depending on how jurisdictions report such failures to pay. But there are ways to prevent negative scores and parents can follow necessary steps to ensure they don’t end up with a bad score.
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