If I default on a debt is the effect on my credit score the same regardless of the amount of debt?
For example if I default on a few hundred dollars of medical debt would that effect my credit score less than defaulting on a many thousands of dollars of medical debt?
Defaulting on a larger amount does lower your score more. For a late payment, the size doesn't matter.
However in the scope of things that hardly matter. Any default or late payment regardless of size is serious. A 30 day late payment for a $10 balance on a credit card can lower a good score by 50 points. Any default will be much worse.
Bottom Line: Any default should be avoided. The "size" making it a little worse is irrelevant. Good rates and such are out the window either way.
