Can an apartment complex hurt your credit by having late payments?

Answer 1

Please allow me to confirm that it CAN effect your credit. The apartment community typically, but not always, turns the accounts over to a debt collection agency. Once the agency has the account, they start sending letters, calling etc. The account is typically reported to the bureaus between 90-120 days after placement. The reporting is the first piece of leverage to get a debtor to pay. The goal is to get the money, not to prevent you from opening up an account at Best Buy. If you pay the collection agency quickly, you won't have a mark on your credit at all. You might even be able to pay a settlement rather than a full amount. Evictions however are reported independently through the county. Evictions by the way, don't drop off after 7 years, depending on the state, they can last a lot longer depending on the state. The FCRA (fair credit reporting act) says that an item on your credit can stay for 7 years from the date the debt was incurred OR the last payment date.

Answer 2

Generally speaking late payments do not hurt your credit per se. However, if you are continuously late on your payments for rent on your apartment you can be evicted, a situation that could hurt your credit.

The general rule with apartment complexes is that your rent is due on the first of the month. If your rent is not paid by the fifth of the month a late fee usually is charged. If you pay your rent after the fifth of the month with the late fee included it's the same as paying your normal rent: status quo. Some apartment complexes may apply the late fee towards your next month's rent instead. But in any case a late fee is charged and you must pay it.

If you do not pay your rent by the 10th of the month, according to the terms of most standard leases, including the late fee, the apartment complex can file eviction proceedings against you. If this happens you must pay your rent, including the late fees, and the cost of eviction proceedings in order to regain control of your situation. If the apartment complex did this for the first time they will normally allow you to make all the payments including the eviction fees and cancel your eviction proceedings. But if this happens again your apartment complex may require you to move out.

In order to avoid hurting your credit, if the apartment complex files eviction proceedings against you, pay all the fees they require and get the apartment complex to agree to cancel the eviction proceedings while you voluntarily move out.

If you are late on your rent and are charged a late fee and simply pay it with your normal bill, unlike credit card and financing bills, there is normally no entry made on your credit report, adverse of which you can easily challenge. But if you repeatedly are charged late fees you may be required to pay an additional security deposit as a condition of your staying in your apartment. Check with your landlord about this and see if you can work out this matter over why you are continuously late on your rent. Remember a roof over your head is more important than any other payment.

Answer 3

Not adversely if you pay on time