Your Credit Report (a brief comment)
Tuesday, May 6th, 2008As an employee of a financial institution I have the ability to view prospective member’s credit reports. It is amazing how many people are in collections from the library. Did you know that not repaying that nominal library charge for turning in your books is actually hurting your credit scores? What do you think lenders think when they see that you have been in collections with the library for the past two years over an $80 fee? If you can’t repay the library (who lets you read their books for free), why would you repay your normal debts at an institution?
Before you decide to not pay your library fee out of principle, remember that potential creditors have the ability to see this and it will hurt your credit score. Lower credit scores equate to higher rates on your loans. You will easily pay over $80 in additional interest with a higher rate loan. Do the smart thing, pay off your library fees because they may come back to haunt you.