Will Late Rent Payments Hurt Your Credit Score

Q: Can late rent payments hurt my credit score? Jasmine, Plainfield, NJ

A: Any late payment of 30 days or more can negatively affect your credit score. The longer the payment is late, the more damage it can do to your credit, particularly after a missed payment is sent to a collections company. Landlords are getting more aggressive with tenants who pay late or miss rent payments particularly after the eviction moratorium that lasted over a year. Credit scores are an important component that landlords use to evaluate and select tenants. A damaged credit score can make it difficult to secure future housing, access financial services, and find employment. Yes, landlords can report late rent payments to credit bureaus.

However, credit bureaus normally require multiple late payments or other negative marks before they’ll significantly lower a credit score. A single late payment will normally only lower your credit score by a few points.

If you have the money, you should pay your rent on time to avoid the possibility of a negative mark on your credit. If you’re having trouble making a payment, you should contact your landlord as soon as possible to work out a solution. Your landlord doesn’t want to hurt your credit, he just wants his rent money. You also have the right to dispute any inaccurate information on your credit report. If your landlord reports inaccurate information to a credit bureau, you have the right to dispute it. If that happens, contact the credit bureau in writing and request a correction. The credit bureau has 30 days to investigate and respond to your dispute.

Thanks for your question, Jasmine.

For more real estate tips and information visit my blog at geraldlucas.com.