Renting an apartment does not affect your credit score. Most landlords dont report any information at all to the credit reporting agencies about their tenants.
Significance
When you rent an apartment, the leasing agent will do a background check. They will also take a look at your credit report. Whenever your credit report is accessed, when you apply for credit, it will leave a credit inquiry. A credit inquiry can lower your score less than five points.
Considerations
If you dont pay your rent, the landlord could evict you. The case could wind up in court and you could get sued because of the amount you owe on your lease agreement. If the landlord gets a judgment against you, it can show up on your credit report. This will lower your credit score.
Effects
Most leasing offices are not members of the credit bureau. Therefore, they dont report information to the credit reporting agency. If they have to turn your information over to a collection agency, your information can be reported to the credit reporting agencies by that collection agency.
Time Frame
All derogatory information reported to your credit file, such as a court judgment in favor of your landlord, will stay on file for a period of seven years. Once this time has passed, the derogatory information should be removed automatically.
Warning
If your credit is bad, it can prevent you from renting an apartment. If you have to apply at three apartment complexes, all three will take a look at your credit score, which will result in three credit inquiries.
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