TIL my credit score dropped 40 points because of a $3 water bill I forgot to pay

Was checking my credit report last night and saw a 40 point drop out of nowhere. Turns out a water bill from when I lived in Austin back in 2021 went to collections. I never even got a notice about it because I had moved. Anyone else had something this small mess up their score for years?

2 comments

2 Comments

charlie_roberts871mo ago

My buddy had almost the exact same thing happen with a library fine of all things. He moved from Ohio to Florida and apparently he had a book out that his roommate was supposed to return. It was like a $5 fee that turned into $25 in late fees and then somehow got handed over to a collections agency without him ever getting a single letter because he moved. He didn't find out until he went to get a car loan two years later and the bank was like "hey you have a collection on your credit report." He had to pay the stupid fine and then fight with the credit bureaus for months to get it removed because the collection agency was a nightmare to deal with. The whole thing was so ridiculous for such a tiny amount of money.

karenm491mo ago

That $3 water bill is just more proof that our whole system is designed to punish you for tiny mistakes while big companies can screw up all they want and nothing happens.