Do not listen to this dude. Your credit rating will be affected and you won't be able to get loans, apply for mortgages and might even be denied buying cars when they check your credit ratings.
Maybe not. I could be totally wrong, but I don't think that everything that gets sent to collection agencies necessarily affects your credit.
The way I understand it, only things in which credit is involved (loans, mortgages, credit cards, retail credit, utility bills, etc) can hurt / help your credit rating. An unpaid traffic ticket wouldn't fall into that category.
I got this from Equifax:What are the most common factors that can negatively affect a credit score?
Here are the top, most common negative score factors. Note that the specific wording given by your lender may be different:
- Serious delinquency
- Serious delinquency, and public record or collection field
- Time since delinquency is too recent or unknown
- Level of delinquency on accounts is too high
- Number of accounts with delinquency is too high
- Amount owed too high on accounts
- Ratio of balances to credit limits on revolving accounts is too high
- Length of time accounts has been established is too short
- Too many accounts with balances
Most of the points mention accounts, so I don't think it applies in this case.
Having said that though, I still think he should just pay the ticket.