Landlord troubles are never fun, particularly if you are worried about a conflict staining your credit report. While landlords and property management companies generally don't report your rent payments to credit bureaus, information about your tenancy can still find its way to both credit and tenant screening reports.
Credit Reporting
The three major credit bureaus in the United States, Experian, TransUnion and Equifax, compile your credit reports using information provided by some creditors. Potential creditors, employers, landlords and insurers use your credit report to make decisions about hiring or doing business with you. Landlords and property management companies generally do not report directly to credit bureaus because doing so is costly in terms of both time and money, according to Maxine Sweet of Experian. However, if you don't pay your rent, a landlord may hire a collection agency to pursue the debt. Collection agencies often do report to the credit bureaus, so your late or defaulted rent payments may well end up on your credit report as a collections account.
Tenant Screening
Tenant screening services offer landlords a way to do a comprehensive background check on a tenant. A tenant screening report usually includes a tenant's credit and criminal history as well as a courthouse record search that lists any evictions or lawsuits filed against the tenant.
Leases and Rental Agreements
When you sign a lease or rental agreement with a landlord, you commit yourself to its terms. This means that you have to pay your rent and follow your landlord's rules throughout the duration of the lease, regardless of your personal circumstances. Unemployment, job transfers and even health problems won't get you out of a lease. If you don't pay your rent, for example, your landlord can not only have you evicted from your home, but he can sue you for the balance owed on the lease as well.
Evictions and Judgments
Evictions are a matter of public record, and while they don't normally show up on credit reports, tenant screening services usually include them in their reports. If a landlord took you to court to collect back rent or money for damage to your apartment and won his lawsuit, the judgment will appear on your credit report.
FCRA Rights
If you believe that the information on your credit or tenant screening report is wrong, the federal Fair Credit Reporting Act (FCRA) gives you the right to dispute that information. Upon request, the credit bureau must investigate your dispute and correct or remove any information it cannot verify. The FCRA requires a landlord to get your permission before running a credit check or tenant screening report. If the landlord denies you housing or takes another "adverse action" (such as requiring a cosigner or an extra security deposit) against you based on your credit or tenant screening report, she has to tell you why. You are also entitled to a free copy of your credit report from the credit bureau or screening agency that provided the report.
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