Can Late Rent Payments Affect Credit Scores?

We all try our best to pay rent on time, so an occasional mistake or some late rent payments shouldn’t count against us, right? You may feel that way, but there’s no guarantee that your landlord agrees. That’s why it pays to address matters directly if you think you’ll be late with the rent. A New York City rent dispute lawyer from our firm can help.

Can Late Rent Payments Affect My Credit?

In some cases, yes. This mostly depends on how your rent is paid. It used to be quite rare for late rent payments to be reported to credit reporting agencies, and it’s still not incredibly widespread. However, it is a possibility for more renters these days for a few reasons.

First, there are more large companies who own buildings and collect rent. These larger property management companies are more likely to report on rent payments. At the same time, even some individual landlords have moved away from collecting a monthly check and have opted to use digital payment processing systems that can make it easier to track a history of payments.

This may seem like an annoyance, but there is some good news. If late rent payments are being reported, that means that on-time payments should be too. Renting and paying on time can help your credit score rise.

Will My Rental History Be Affected By Late Payments?

Even if your rent payments are not reported to Experian or any of the other credit agencies, they could still affect your rental history. If you get a new landlord in the future and they ask for references from past landlords, they are unlikely to hide that you made a habit out of paying rent late. This can still have real consequences even though your credit score is unaffected.

What Can I Do to Avoid Late Rent Payments?

This is why it’s important to try to avoid making late rent payments in the first place. Things that can help include:

• Consistently paying on time
• Letting your landlord know right away if you need to be a bit late
• Paying as soon as possible once you realize that the month’s rent is late
• Knowing which kinds of situations allow you to withhold rent and which do not

You have to be careful. Even if you think that you have a good reason to withhold your rent or be late with the payment, this could adversely affect your credit score and rental history.

What Happens If My Landlord Goes to Collections?

One thing that’s certain to affect your credit is if a debt that you owe goes to collections. If you are late with enough rent payments or leave a rental unit while you owe a landlord money, they might send this debt to collections. This debt is going to appear on your credit report and can factor in when you are trying to get another loan or apply for an apartment.

Contact Our Law Firm Today

So if you are having any kind of rent-related issue with your landlord, try to solve it before it can begin following you around and causing issues in other areas of your life. Contact Robert Rosenblatt & Associates to schedule a consultation and learn more about how our lawyers can help.