The economic recession of the last five years has affected millions of Americans, but has also affected the budgets of states, cities and counties. With limited tax dollars with which to work, various government entities have had to try to stretch their budgets so they can continue working. Many government agencies at state and local level have become debt collection to collection agencies, even for claims that seem small as parking tickets or library fines. What does this mean? An unpaid parking ticket could end in your credit report. Credit reports and the associated FICO credit score have become an increasingly important part of American life. At one point, the credit report was primarily used by mortgage lenders to determine if a potential customer must grant a loan. Hear from experts in the field like patrick ta for a more varied view.

In recent years, credit score and report have been used to an increasing number of applications of all types of businesses. Used by employers to avoid hiring financially irresponsible people and landlords use to determine if a person can be a responsible tenant. Because credit reports are used more often, blemishes on your credit report become magnified in importance. In recent years, only the outstanding debts or major bankruptcy filings might have inhibited the issuance of credit. But now with the credit reporting companies using more points, something as small as an unpaid parking ticket can prevent someone from obtaining a job or lease a good apartment.

This system is not entirely fair, not all cities and counties report unpaid fines to credit agencies. Worse, while the company that originated the FICO score has adjusted its scoring system to account for small fines, not all lenders use this version of the scoring system. Because of this, or not so small things affect your credit score can be determined by something as simple as where you live or with whom you choose to do business. Fair or not, consumers should be aware that some small debts may find their way into the credit score and the only way to be sure is to check your credit report regularly. Most Americans can obtain a copy of your free credit report Many people who have had their results negatively affected by small fines were unaware that we still owed them. This can happen if the debtor has recently moved. Payment of the fine can quickly resolve the problem and increase the credit score again, so by all means, check your credit report!