I recently found out that I have a library fine of $4.60 at my local public library for not turning in my books on time. I believe this was my first library fine. My library typically gives you a 1 day grace period and then they charge. And guess what? I went to turn it in one day after the grace period! I hate that I am essentially throwing out $5 for failing to pay attention to the due date. I warrant this is not going to happen again.

So, since the last time I was at the library I didn’t have any cash on me I went back to the library today to pay my fine and to renew some books. But, the library couldn’t accept my money because their system was down. And this got me wondering, can little things like late library fines affect your credit score?

According to an MSN MoneyCentral article it may. Local governments in an effort to recoup some of the billons of unpaid debt have turned to private collection agencies that tend to report unwillingness to pay to credit agencies. So be careful when you get a library fine the next time and be sure to pay it off!

Local governments…increasingly turn to private collection agencies, which typically report the unpaid amounts to the credit bureaus as part of their efforts to pressure consumers into paying the fines. The collectors may add late fees or other charges that increase the balance.   The bottom line:  Pay your fines promptly.