My credit score dropped 42 points over a $17 library fee I forgot about

I was sitting in my car outside the DMV in Phoenix last Tuesday, checking my credit score before applying for a car loan. Saw it dropped from 718 to 676 and almost had a heart attack. Called the credit bureau and they flagged a collection account from the Phoenix Public Library for a book I returned 3 days late back in 2019. The original fee was $17 but with interest and collection costs it ballooned to $89. I paid it right there on the phone and asked them to delete the account. Has anyone else had a tiny debt blow up like this on their report?

3 comments

3 Comments

thomasb4115d ago

That same thing happened to me over a parking ticket in Austin. I forgot about a $12 ticket from 2017, it went to collections and my score dropped 45 points. By the time I found out, the collection agency wanted $85. I paid it but the damage was already done. It took me almost a year of on time payments to get back to where I was. The worst part is the library or parking authority doesn't even care, they just sell the debt and move on. Now I check my report every 3 months like a hawk so nothing slips through again.

the_cameron15d ago

Yep @thomasb41, I freeze my credit reports now. Stops the surprise collections cold.

the_rowan15d ago

The credit freeze is a solid move, and it's free to do at all three bureaus. Just remember if you apply for anything new you gotta remember to thaw it first.