CAN MISSING A RENT PAYMENT IMPACT YOUR CREDIT SCORES?

On July 31, landlords are again able to legally evict tenants for failure to pay rent if there’s no new stimulus bill or executive action to renew the temporary protections put in place last year. This means millions of Americans may be at risk of missing rent payments or under the threat of eviction.

While missing a rent payment or an eviction won’t end up on your credit report, not paying your rent can still indirectly have a negative impact on your credit scores.

For example, if your landlord sells your rent debt to a collection agency, this can show up on your credit report. Your payment history is an important factor that goes into calculating your credit score. Late payments can negatively impact your credit scores and remain on your credit report for seven years.

TIPS FOR REACHING YOUR FINANCIAL GOALS

1. Make Payments On Time

Making payments on time is essential when working toward your credit goals. Setting up auto pay is one way to make sure your bills are paid on time. Or, you can put together a monthly calendar with bill due dates.

2. Monitor Your Credit Report

Another vital part of financial success is monitoring your credit report and scores. A credit report and identity theft monitoring service can provide credit report monitoring and alert you to significant changes in your credit report along with suspicious activity.

A credit report and identity theft monitoring service also can help provide financial peace of mind. This is especially important for those facing difficulties paying their rent and want to work toward regaining their credit health.