Monday, August 16, 2010

How does violating a rental lease affect one's credit score?

...specifically by not continuing to the end of the lease period (example, 2 months only out of 8 months). Anyone know how many points this shaves off one's credit score?How does violating a rental lease affect one's credit score?
it should be none...in general rental agreements do not appear on credit reports.





but if you still owe them money per your contractual agreement they can sue you and have a judgment entered in to the public records section of your credit report...which would decrease your score a lot!





they could also, place the owing balance into collections which wouldn't hurt your score as much but it would still be pretty bad...





it's impossible to give you a number b/c your score is based on everything as a whole not just one line item...How does violating a rental lease affect one's credit score?
depends if landlord reports it


may never effect it
It depends whether they even report it to the credit bureaus. Most apartment communities and landlords don't...unless there is a judgement against you from them. Then, the judgement would show up on your report and hurt your scores.
If the landlord/agency lets you out of your lease and you pay all rent due plus any fees for early termination, it will not affect your credit score at all. If you leave without paying what you owe, it may be reported by the landlord, if they have that capability. If they take you to court for the money you owe and you have a judgment entered against you, it will go on your credit report, affecting your score in a big way.
I am not sure that it will affect your credit score. First of all the person/company that you are leasing from would have to report it to a credit agency. You also did not mention if you paid to the end of the lease period. I get my credit report regularly and I have never seen real estate leases even mentioned by any of the reporting agencies-only auto leasing.

No comments:

Post a Comment