Does Child Support Affect Your Credit?

Does Child Support Affect Your Credit?

by | Sep 16, 2022

Child support refers to the amount paid by one parent to the other to support and provide for the needs of the child. This sum of money is often paid when the parents do not live together or when one parent is the primary custodian.

Mostly, child support ends when the child becomes an adult, although it might be continued in some cases. Child support does not affect your credit score except if you have been late on making your child support payments or have unpaid child support.

Why Is Child Support on My Credit Report?

Child support payments reflect on your credit report because credit report agencies include them. This means missed or late payments are also included in your credit report just like other debts.

These overdue payments can remain on your credit report for many years, even after payment.

How Does Child Support Impact My Credit?

Child support has certain impacts on your credit. On your credit history, it is normal for the child support to show. If you pay regularly and on time, you do not have to worry. If you are inconsistent with your payments, your credit can be negatively affected. Listed below are the various ways in which child support may affect your credit.

1. Poor Credit Score

Defaulting on your child support payment is considered a debt. The debt is later reported to the credit bureaus and can show on your credit report.

This leads to a negative mark on your credit scores, which can lower it by 100 points or more. A poor credit score can cost you more compared to a good credit score, so it is advisable to pay your debts or bills regularly and without delay.

2. Loan Approvals 

Overdue child support appears on your credit report, and this can negatively affect your ability to get approvals for any type of loan, be it mortgages, credit cards, car loans, or the like.

Lenders consider your income and general expenses, including child support obligations, when determining if you qualify for a loan.

Can You Remove Child Support from Your Credit Report?

Child support information as well as important information cannot be removed from your credit report except if there is inaccurate reporting. The following ways can be taken to help remove the inaccuracy:

1. Gather Payment Proof

If the child support debt remains on your report even after completing the payments, you are to reach out to the credit bureaus. First, you should make sure you have paid in full and then gather all your proof of payments from the child support agency you have been paying through.

2. File a Dispute

After gathering your receipts and other documentation, you can then file a dispute with the credit reporting agencies. You can do this by reaching out to the major credit bureaus.

It takes approximately 30 days to investigate your claims in most cases. If there is a delayed payments, they can still reflect on your credit report seven years from the delayed date.

Note that if there is no actual delayed payment, the issue can be resolved.

Bottom Line on Child Support and Your Credit

Child Support is a very important payment you must pay to the other parent without delay. Failure to pay child support can negatively impact your credit scores.

Consistent child support payments can help positively impact your credit scores. If you want to achieve your credit goals further, utilize a credit monitoring service. MyScoreIQ services offer plans that include credit reports and scores, real-time credit and identity theft monitoring and credit education resources.

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*Source: Fair Isaac Corporation.

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