Does Unpaid or Late Rent Affect Your Credit Score?

By PropertyClub Team
Nov 26th 2022
Your rental history can affect your credit score, especially if you have late or unpaid rent. It’s vital to keep up with your monthly responsibilities for the best credit report. Read on to learn more about the impact rent can have on your credit score. 

hash-markTable of Contents

Does Paying Rent Late Affect Your Credit Score?
How Does Not Paying Rent Affect Your Credit?
Do Rent Payments Appear on My Credit Report?
Why Can Late Rent Payments Affect Your Credit?
Is There Such a Thing as a Rent Credit Score?
Long Term Consequences of Late Rent Credit Score
What To Do If You've Paid Rent Late?

hash-markDoes Paying Rent Late Affect Your Credit Score? 

Yes, paying rent late affects your credit score, but only if the delinquency goes over thirty days. If you pay the amount before then, your credit score will be okay. If not, it will shift.

A late payment can have a drastic impact on your credit score. Therefore, you should do anything to avoid paying for your rent later than you should. If you think you might make a late payment, ensure you speak with the credit bureau and your landlord to see what you can do.

hash-markHow Does Not Paying Rent Affect Your Credit?

Not paying rent can affect your credit score negatively, making it drop. However, your landlord needs to report it, and oftentimes unpaid rent might stay off your credit report for a long time. This is because many landlords do not report unpaid rent to credit bureaus. However, some do. The credit bureau will then include this unaddressed amount in the report.

If your landlord does report your unpaid rent, it will hurt your FICO score. Ensure you keep up with your rent payments to avoid the risk of your credit score dropping.

hash-markDo Rent Payments Appear on My Credit Report? 

Most credit bureaus don’t automatically list rent payments on your credit report. However, there is a way you can add the rent payments to the credit report if you want proof that you make the payments on time every month.

You can do this by contacting a third party or speaking with your landlord. They can help you add rental payments to your credit report, a high-risk, high-reward situation for individuals.

While late rental payments can damage your score, adding on-time payments to your credit report can improve it, making it worthwhile to get them added if you have a limited credit history.

hash-markWhy Can Late Rent Payments Affect Your Credit? 

Like all payments, a late rent payment shows that you’re not responsible enough to complete payments on time. If rent is on your credit score and your tenant reports it to a credit bureau, it will drop your credit score a significant amount.

It’s critical to be mindful of these things when renting an apartment. Ensure you have enough money saved to cover at least a few months of rent at a time. Otherwise, it will impact your credit score to a potentially unrecoverable point for a few years.

hash-markIs There Such a Thing as a Rent Credit Score? 

There is such a thing as a rent credit score. This report displays only the history of paying rent on time, which can come in handy if your overall credit score is not as well. A lender might be impressed by a rent credit score more than an unpaid item from long ago.

If you have something that has irreparably harmed your credit score, try a rent credit score. The more you pay on time, the better you stand with lenders in the future. Ensure you can hand over the money on time before you get a rent credit score.

hash-markLong-Term Consequences of Late Rent Credit Score 

In the long-term, a late rent credit score can hurt your life. Not every tenant reports late payments, but those that do can set your life in a new direction. The score can fall far below the desirable point for lenders.

A late rent credit score can prevent you from access to other apartments, cars, and loans in the future. If your credit drops low enough you might even have trouble renting from large landlords and might need to look specifically for no credit check apartments. There are enough long-term consequences that make late payments worth staying away from in real life.

hash-markWhat To Do If You've Paid Rent Late

Before you even get into this situation, you should be friends with your landlord. The best time to do this is when you first move into the place. Attempt to be as friendly as possible and get on their good side. This action will come in handy in tight situations you might find yourself in.

If you find that you’ve paid rent late, ensure the first thing you do is communicate with your landlord. They will be able to guide you in the right direction. You might be able to work something out so that the late payment won’t alter your credit score. There’s no need to panic! Be as kind as possible for the best results.