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Unpaid child support can lower a parent’s credit score

Unpaid child support can have serious consequences. Aside from impacting the parent responsible for making payments, it can also affect the child who relies on that financial support.

In addition to legal penalties, such as wage garnishment and suspension of driver’s licenses, unpaid child support can have other consequences. For example, it can hurt an individual’s credit report and score.

Credit reporting and lower scores

North Dakota Child Support states that when child support payments are not made as ordered by the court, the arrears could be reported to major credit bureaus. This means that the missed payments will show up on the non-paying parent’s credit report, negatively impacting their credit score.

A lower credit score can make it more difficult to secure loans, credit cards or even housing in the future. It is important to note that child support arrears can stay on a credit report for up to seven years, even after the debt has been paid off. This can have long-lasting effects on a person’s financial health and stability. Additionally, having a negative mark on your credit report can make it harder to rebuild your credit over time.

Addressing back child support

For parents who are struggling to make child support payments, it is necessary to communicate with the custodial parent and the court as early as possible. In some cases, modifications to the payment schedule can accommodate changes in financial circumstances. It is always better to deal with the issue immediately rather than waiting until falling behind.

By taking proactive steps to address child support arrears, parents can avoid the negative consequences of having missed payments reported to credit bureaus.