How bad is my credit situation?

March 14, 2012 9:29 AM

I went through serious depression a while ago, and while recovering, forgot about some library fines. Now, 3 years later, they are hurting my (Canadian) credit score.

I feel *terrible* about this, and will be going to the library ASAP to settle my debt.

In the mean time though, what can I expect from this? My credit score is in the low 600s, which is apparently a 'poor' rating in Canada. All of my other debts are paid monthly, and I rarely use more than 20% or so of my credit card limit. I was expecting excellent credit, so this came as quite a shock.

If I pay this off, is the library obligated to report that to the credit bureaus immediately or soon?

As this is my only delinquent account, ever, should I expect the score to adjust itself to a more favourable rating in the next few months? Or is this something that is going to stick with me for a while?

posted by anonymous to Work & Money (2 answers total)

Yes, they will report very quickly to the credit bureau (but keep your receipts just in case). You should also work to build a positive credit rating. It is a game that has its own internal logic.
posted by saucysault at 9:36 AM on March 14, 2012

The library can wipe the delinquent tradeline entirely from your credit report. They may not be willing to do so, but it is technically possible. Can't hurt to ask, anyway. If they do so, your score should rebound within a month or so. Otherwise, your score may take a couple of years to fully recover.
posted by kindall at 9:46 AM on March 14, 2012