Saturday, November 25, 2006

The Effect of Rental History on Credit

Your credit score affects whether a landlord will lease to you, but paying late or skipping out on a lease can affect your credit and show up in your credit report, as well.

How Rental History Can Be Reported on Credit

    Paying your monthly rental payments on your apartment,will generally not be reported to your credit. However, if you regularly miss rent payments or break a lease, these negative items can be reported against you.

What Do Landlords Report

    A landlord can choose to report information to your credit report, either positively or negatively, but most only report if there are negative items since reporting costs the landlord a fee.

Judgments

    If you are sued for monies owed or for breach of contract, this can also show up negatively on your report. Garnishments to satisfy such debts are also reported.

Rental History Request

    In some instances, rental history may not be reported directly to your credit report, but will be requested when applying for a loan. If your landlord had negative information about your payment history, he may divulge that information to the potential lender.

Maintain A Good Rental History

    The only way to ensure that your rental history does not keep you from obtaining a new job, a new apartment, or new credit is to pay your rent on time for the duration of your lease.

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