Did You Know… Late Rent Payments Can Hurt Your Credit Score?

Rent, just like any other bill, needs to be paid on time. If you don’t pay your rent or if you’re late with your payments, did you know that your landlord can take action, like reporting you to the credit bureaus? And that can hurt your credit score.

Your landlord can do this in several ways. For example:

• Your landlord can subscribe to and report late or non-payments to each of the credit bureaus.
• Your landlord can turn your debt over to a collection agency. The collection agency can then report you to the credit bureaus.
• Your landlord can file an eviction with your county court house, and that filing can show up on your credit report.

If you’re having trouble paying your rent on time, ask to meet with your landlord and see if you can come up with a payment plan.

If you have two years or more history of on time payments, then sign up for solutions like RentReporters to have your payments reported to TransUnion, one of the credit bureaus. Having your on time payments reported to the credit bureaus can help boost your credit score.