There may come a time when you find that you're unable to pay your rent. Maybe you just lost your job and don't have cash in a savings account to fall back on. Or maybe you had to fix your car out of nowhere, and that drained your bank account.
Often, if you need a little extra time to make a rent payment, it's not such a big deal. First of all, many lease agreements include a grace period that gives you built-in leeway for paying your rent a bit after it's due.
But if not, and you're a tenant with a history of paying on time, a talk with your landlord might buy you some more wiggle room. Your landlord might, for example, agree to give you an extra few weeks to hand over your rent check if you explain that you recently experienced a financial crisis.
But as a general rule, a late rent payment has the potential to hurt you financially. So it's important to address the issue with your landlord rather than simply be tardy.
Your credit score may or may not take a hit
If you rent goes unpaid after it's due for 30 days or more, your landlord might choose to report that late payment to the credit bureaus. From there, your credit score has the potential to drop.
Similarly, if you're very late on your rent, your landlord might choose to turn the matter over to a collection agency. From there, you may be even more likely to have your delinquent payment reported.
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In some cases, though, your landlord might choose not to take action for a single late rent payment -- even if you're very late on that bill. Ultimately, landlords can choose to report late payments or not, so it's possible that if you're late, you might get lucky.
If you talk to your landlord about why your payment is late, and it's the first time, there's a good chance that it won't negatively affect your credit score. Chances are, if you've been paying your rent on time and there's a one-off situation that prevents you from doing that one month, your landlord isn't going to be a jerk about it and report you right away.
Remember, if there's still time left on your lease, it's in your landlord's best interest to maintain a good relationship with you. So your landlord might give you some grace not just out of the goodness of their heart, but for the sake of having things run smoothly for the duration of your lease agreement.
You might suffer financially in other ways
A drop in your credit score might make it difficult to borrow money the next time you need to, whether it's in the form of a loan or a new credit card. But even if a late rent payment doesn't result in credit score damage, it might hurt you financially in a different way.
First, some lease agreements call for financial penalties when rent is paid after its due date and grace period. So you could be looking at additional fees.
Secondly, if you're late with your rent payments consistently, your landlord is unlikely to renew your lease. So you could end up losing your home. Plus, when you're applying for a new rental, it's common for landlords to contact your former landlords as a reference. If you try to get a new place and you have a history of late rent payments, you may find that you're denied a rental because your old landlords are quick to report your history of being late.
To be clear, this won't necessarily happen if you're late one time. Rather, it's a pattern of lateness that's more likely to get you into trouble.
All told, a single late rent payment may not do any damage to your credit score if it isn't reported. Being upfront with your landlord might prevent that news from hitting your credit report, so get in touch once you realize you're not going to be able to send in that check on time.
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FAQs
Missing a rent payment by a few days won't hurt your credit. But if you leave your rent unpaid by 30 days or more, it could damage your credit if your landlord reports the delinquency to one or more credit reporting agencies.
Do late payments show up on rental history? ›
Therefore, if you've had previous landlords report your late payments to the credit bureaus, they will see your past rental payment history. Even if you have an otherwise positive credit score, they might decide to turn you down in favor of someone who has always paid rent on time.
Does eviction show on a credit report? ›
To start, no, an eviction itself won't show up on your credit report. However, if the eviction is due to defaulted mortgage or rent payments, and your lender or landlord sends the debt to collections, the collections account may appear on your credit report and have an impact on your credit score.
Can a landlord affect credit score? ›
When you break a lease, you'll generally be charged penalties by your landlord. Failure to pay these penalties can impact your credit scores, as your landlord can turn the debt over to a collection agency.
Do late bills affect your credit score? ›
In general, one late payment could lower your score by up to 80 points if you have a high credit score, according to Fair Isaac Corp., provider of FICO. Lower credit scores would lose fewer points from a single late payment because they already reflect a higher level of nonpayment risk, FICO notes.
How bad is one late rent payment? ›
In some cases, a payment that's just a few days late won't be a problem; payments that are 30 days late or more are likely to affect your credit score. If you do see a negative report from a late payment, getting back on track with regular, on-time payments can help bring it back into order.
Does unpaid rent affect credit score? ›
Missing a rent payment by a few days won't hurt your credit. But if you leave your rent unpaid by 30 days or more, it could damage your credit if your landlord reports the delinquency to one or more credit reporting agencies.
How low does your credit score go after eviction? ›
Although evictions won't show up on your credit reports, future landlords will be able to see your rental history. Any past evictions can make it significantly harder for you to get approved for a lease in the future.
Do evictions show up on credit Karma? ›
Evictions are not listed on credit reports. However, if you still owe back rent, your former landlord may have sold the debt to a collection agency, and a collection is a derogatory mark that will appear on your report.
How long does apartment debt stay on credit? ›
The judgment may appear on your credit report and/or tenant screening reports for up to seven years. Read this guide to learn more about when it is legal for a rental debt judgment to appear on your “record” and how you can dispute any improperly reported judgments for rental debt.
Rent payments seldom appear on credit reports, as few landlords report them to credit bureaus. Yours may appear on your credit report if you: Get your landlord to enroll in a rent reporting service. Sign up for a paid rent reporting service.
Do apartment applications hurt your credit? ›
When you fill out an application for an apartment, most property representatives run a hard credit inquiry which can potentially affect your credit score by up to five points for each application submitted. While five points may not seem like much, it can add up.
How many points does breaking a lease hurt your credit? ›
Fortunately, if you're financially responsible and follow your lease agreement, breaking a lease shouldn't have any effect on your credit.
Can you have a 700 credit score with late payments? ›
It may also characterize a longer credit history with a few mistakes along the way, such as occasional late or missed payments, or a tendency toward relatively high credit usage rates. Late payments (past due 30 days) appear in the credit reports of 33% of people with FICO® Scores of 700.
What bills boost your credit score? ›
Some other monthly bills that, if paid on time and reported to the credit bureaus, could help you build credit include: Credit card payments, including secured credit cards and student credit cards. Installment loans like student loans and auto loans. Mortgages.
How to ask for late payment forgiveness? ›
A goodwill letter is a formal letter to a creditor or lender, such as a bank or credit card company, to request forgiveness for a late payment or other negative item on your credit report. In the letter, you typically: Explain the circ*mstances that led to the late payment or issue.
Does rent track report late payments? ›
The effects of rent reporting payments may not be immediately visible. Individual results will vary. What happens if I don't pay rent on time? RentTrack does not report missed or overdue payments.
Can you get an apartment with late payments on credit? ›
If you have bad credit, this could result in a rejection for the apartment or a more expensive security deposit. However, that's not always the case. Some landlords don't check credit at all, while others are willing to overlook iffy credit if you can prove your responsibility and trustworthiness in other ways.
Can you see rental history on credit report? ›
It's unlikely that your rent payment history appears on your credit reports, but that's not because paying your rent on time isn't important. More likely than not, it's simply because your landlord doesn't report your rent payments to the credit bureaus (Experian, TransUnion and Equifax).
How long does a late rent payment stay on a credit report? ›
The effects of late payments are long-lasting but not permanent. A late payment will be removed from your credit reports after seven years. However, late payments generally have less influence on your credit scores as more time passes.
