Don’t you miss those days when all your landlord could do is to toss your precious belongings out of your apartment, lock you out or turn off your utilities when you skip paying your rent…for several months?
As time goes by, and as technology improves, their ways of evicting unruly tenants become sophisticated, too. From serving you a Late Rent Notice to hiring eviction lawyers; they now can affect your credit scores, as well.
Apartment Rental Applications
Anytime you authorize a hard inquiry or “hard pull” on your credit it can lower your credit scores by a few points. Examples of hard inquiries include auto loan or apartment rental applications. Soft inquiries, unlike hard inquires, won’t affect your credit scores. Hard pulls stay on your credit report for about two years. More on the difference between hard credit inquiry and soft credit inquiry, visit Credit Inquiry Soft Pull vs Hard Pull | by LendingTree.com
Delinquent Rent Payments
If you fail to pay your rent and it can be reported to a collection agency. This information will appear on your credit report and will remain there for seven years from the date of delinquency.
Outstanding Balance on Your Lease
Cleaning or repairs are often the responsibility of the tenant. If left undone, the cost can be added to your lease balance if your security deposit is not enough to cover it. Unpaid balance can reflect on your credit score if your landlord pursues you through a collection agency to recoup the money owed. Many find themselves in a situation like this when they abandon their lease contract before it ends.
So what can you do to prevent your landlord from ruining your credit? Obviously, pay your rent on time. It can not only save you from all the drama, but also can boost your credit score, as well. It can also help you get that most coveted rental place you’ve been eyeing for all these years. All because of your rental payment history from your previous landlord or rental property management. To learn more about how renting impacts your credit, visit How Renting Can Impact Your Credit | Insights from Credit.com