How Unpaid Parking Tickets Impact Your Credit Score
In Canada, driving is a common mode of transport, with approximately 26 million licensed drivers hitting the road every day. Along with the convenience of driving comes the potential for parking tickets, which can vary from minor offenses to more serious ones. Unpaid parking tickets can have a significant impact on your credit score if not addressed promptly.
Parking Offenses in Canada
Parking regulations vary across Canada’s provinces, with each having its own set of rules and penalties. These can range from parking in a no-parking zone, stopping in a no-stop area, exceeding the meter time, parking too close to a fire hydrant or lane, or occupying a designated spot for people with disabilities without the required permit.
The Cost of Parking Fines
The cost of a parking ticket in Canada depends on the severity of the offense and the province in which it is committed. Fines can range from $50 for minor breaches to several hundred dollars for major violations such as illegal parking in a school zone or driving under the influence of alcohol.
Impact of Unpaid Parking Tickets on Credit Score
You might wonder, “What kind of an impact do unpaid parking tickets have on my credit rating?” The answer depends on whether you pay your fine within the stipulated timeframe. Paying your parking ticket on time will not harm your credit. However, if left unpaid, your tickets could be forwarded to a collection agency, which can significantly affect your credit score.
Most provinces offer a grace period of about thirty days to settle your parking ticket. Some even provide a discount for early payment. Therefore, it is in your best interest to clear the fine as quickly as possible.
Parking Tickets and Your Credit Report
When applying for credit, you might be surprised to find past unpaid parking tickets listed in your credit report. The lender will question you about any outstanding fines. However, this can usually be rectified by paying the owed amount and requesting the city to remove the record from your credit report. This could also improve your credit score.
Disputing a Parking Ticket
If you believe you received a parking ticket in error, you have the right to dispute it. This process often involves waiting for a hearing and possibly appearing in court. The outcome may not always be in your favor, and you may end up paying additional court costs.
Unpaid Parking Tickets Across Canada
Parking regulations differ across Canada’s provinces, and hence, the financial burden from multiple parking tickets can vary. The following sections provide a brief overview of the parking ticket rules in some provinces.
Ontario
In Ontario, parking rules are strictly enforced, and fines vary depending on factors such as the time a meter has expired by or if you have parked in a no-parking zone. The fines range from $30 to $450 based on the city and type of infraction.
Alberta
In Alberta, government-issued parking tickets are treated as fines and must be paid before you can renew your vehicle registration. Non-payment can lead to debt collection penalties and legal judgments.
Quebec
In Quebec, drivers have up to 30 days to pay or dispute a parking ticket. Failure to pay can result in the withdrawal of driving privileges until the debt is settled.
British Columbia
In British Columbia, drivers have up to 35 days to pay a parking ticket to avoid further penalties. The opportunity to dispute a ticket is only provided for 14 days.
The Consequences of Unpaid Parking Tickets
If you cannot afford to pay your parking ticket, it is advisable to pay the fine as soon as possible to avoid further penalties. Failure to pay your parking ticket on time can lead to additional charges and can significantly impact your credit score.
Parking Tickets and Your Driving Record
While parking tickets do not directly affect your driving record or result in demerit points, they can prevent you from renewing your license or getting your license plate stickers.
How to Pay for a Parking Ticket
To pay for a parking ticket, you can do so by phone, post, in-person, or online, depending on your city’s regulations. Early payment often results in reduced fees.
Conclusion
Unpaid parking tickets can have a negative effect on your credit score if not addressed promptly. Therefore, it is crucial to pay your fines as soon as possible to maintain a healthy credit score. Remember, a good driving record does not just mean obeying traffic rules; it also includes promptly paying any fines you incur along the way.
