Can Landlords Report to The Credit Bureau About Unpaid Rent?

Breaking any kind of a contract can have a serious impact on your credit score.  This holds true for all kinds of contracts such as a health club membership, car lease or an apartment rent.  When you sign a contract you are bound by the law to make the full amount of payment that you initially agreed upon.  Whenever you fail to do so you endanger a negative impact on your credit score in one way or the other.

As for the question whether or not can your landlord report unpaid rent to the credit bureau the answer is that it is unlikely that your landlord will be reporting directly to any of the National credit agencies.  It is unlikely because it is difficult if not impossible for individuals to meet the legal and the technological requirements to report to a national credit agency.  Even if an individual were able to meet the legal and the technical requirements the fee involved in being part of the credit reporting program with any of the national credit bureaus would be highly prohibitive.  However, this does not mean that the information about unpaid lease or broken contract will not find its way on your credit report.  Your landlord can take one of the two likely ways to recover the money that you owe him.  The landlord may sue you in a small court for having broken the contract and not paying the full lease amount.  If a judgment is passed against you and you are ordered by the court to pay the damages in this judgment will find its way on the public records.  All the national credit agencies collect information on the financial debt of a consumer from the public records as well which includes judgments passed by a court.  Another possible option open to the landlord will be to sell off the debt to a collection agency.  If the collection agency reports to the national credit agencies your unpaid debt will show as a collection of our account.  In both these cases having an unpaid please will find its way on your credit report and impact your credit score negatively.  Both both these entries will remain on your credit report for a period of seven years from the original date when the delinquency was reported.