Stats show that there were over 10.08 million arrests in the US during 2019-20 under federal or state level jurisdiction. While some of these people get bails, others land in prison. Either way, they face severe consequences of their arrest such as, derogatory remarks, unemployment, financial constraints, and not to mention, a wretched credit history.
In short, prison can wreck your credit score, and improving the credit score requires hard work and enduring efforts. While your felonious record is typically overlooked, civil judgments appear on your credit report. This includes everything from insolvencies and tax liens to monetary verdicts and overdue payments.
After getting released from jail, your credit suffers due to unpaid bills, closed accounts, and outstanding payables. These factors collectively take a massive toll on your credit score.
Read on and find out how prison affects your credit score.
When a person is imprisoned, their payables and bills begin to pile up. Accounts aren’t updated, and payments aren’t made on time, resulting in a financial crunch.
While a huge fraction of prisoners has loved ones at their homes to keep accounts and payables functional, 80% of the inmates still fall behind in making bill payments and clearing credit dues.
Identity Theft Risks
Your credit score suffers while you’re in jail because you might encounter identity theft. Someone can use your social security number to turn on utility services and payables that they couldn’t get into.
Payment history makes up to 35% of your FICO score, and identity theft can leave it in shambles. Moreover, it stays on your credit report for seven years, and therefore, its impact can linger for quite a long while.
Derogatory or disparaging remarks on your credit report are often caused by delinquency and late payment history. And unfortunately, there’s no quick and easy way to get rid of them.
“30 days late” is a highly damaging remark that appears on the report after an individual has crossed thirty days after due dates. Moreover, unpaid credit card and property loans lead to foreclosure and collections. All kinds of derogatory remarks are followed by bankruptcy, repossession, and default charges resulting in a continually falling credit score.
Avoid Wrongful Arrest with Our Efficient Bail Bond Services in Indiana
Going through an arrest is scary, and it can have long-lasting implications on your financial status. Therefore, it’s vital to stay informed and equipped to avoid a false arrest in a proper way.
Let the experts at DeLaughter Bail Bonds support and help you get your loved one out of jail. We believe everyone is innocent until proven guilty, and it’s lawful to get released on bail before trial.