Broken Apartment Lease Can Affect My Credit Report
Some of you have already been in a situation when your landlord says to you “You must pay your apartment lease, as contracted or I will report you to the credit bureau”. With that said, you understand that your landlord may have more power to do that since you signed the apartment lease. One thing you have to always remember is that if you sign any contract in your life, then it is most likely a legally binding contract and you are going face some serious implications, if you decide to break it. So, will my landlord report me to credit bureau because I broke my lease? It’s very unlikely that your landlord will report you to the credit bureau for not paying your rent. They usually take a different route, which is filing against you in the small claims court, which would eventually have negative impact on your credit report. Rent and lease payments rarely get reported to credit bureau companies. Most landlords don’t have any credit bureau exclusive memberships or securities and legal requirements to report you for unpaid rent. When they file against you in court for unpaid rent or apartment lease break, they most likely have an upper hand on winning the case. If they do, then the debt gets reported to a collections agency. That’s when you get all those annoying phone calls about your outstanding debt. Some of those reps that are calling you to collect this debt are extremely mean, which makes you simply not want to pay them. However, if you ignore those phone calls and not pay your debt, then the collections agency has full access of subsequently reporting any and all unpaid amount of rent to the collections agency. Keep in mind, collection accounts remain active on your credit report for 7 years since the delinquency gets reported. That means that whenever you decide to rent out another apartment in the 7 year period, you might have issues getting what you want. Part of the approval process for every landlord is to pull your credit report to make sure your rental history is clear.