Plans can change unexpectedly. Changes in employment, relationship status, or finances may prompt you to rethink your living situation. Some changes may even lead you to move out of your apartment without paying rent for the final month or two on the lease.
And just like that, apartment debt is created.
Like all forms of debt, apartment debt doesn’t go away on its own. Regardless of how long ago that debt was accrued, it will stick around and may hurt your credit score. These tips can help you start to repair your damaged credit and resolve apartment debt on your credit report.
Renting a New Place When Apartment Debt Appears on Your Credit Report
If you’re dealing with the topic of apartment debt, there’s a good chance you’re doing so because you’re preparing to rent a new apartment. However, unless you find an apartment for rent that doesn’t require a credit check, having apartment debt will likely make it more difficult for you to rent again.
Fortunately, here are a few ways you can approach the matter:
- Get out in front of the problem and meet personally with the landlord. Address the situation and let them know you’re taking measures to correct the problem.
- Sidestep the issue by looking for a place that’s leased and managed by a homeowner, since private owners are less likely to run credit reports than property management companies.
- Voluntarily offer to pay a larger deposit to calm any concerns from the landlord.
- Ask a close friend or family member with good credit to serve as a co-signer on your lease.
Resolving an Apartment Debt Issue
If your apartment debt was sent to a collection agency, contact the agency to review options for paying it off.
According to NerdWallet, you may have several choices, including:
- Establishing a payment plan
- Paying the amount owed in one lump sum
- Negotiating a settlement for less than the full amount owed
Paying the full or negotiated amount of your apartment debt is the best way of resolving it, assuming that it is genuinely your debt and not the result of an error by the landlord or collections agency. However, no system is perfect, and you can help prevent apartment debt errors by keeping proper records of all rent payments.
The Best Way to Tackle Apartment Debt and Other Credit Issues
Good credit is so important today. Credit reports are just one of many factors landlords look at. Additionally, credit card companies and even some job recruiters look at it, too!
Accordingly, it’s always a good idea to remain on top of your credit. Being proactive is the best way to tackle apartment debt, avoid reporting errors, and steer clear of other credit problems.
Start repairing a bruised credit score or building a good one by implementing the following practices:
- Stay up-to-date with your credit report, checking your credit score on a reputable site. You can get one free report from each credit bureau per year.
- Pay your bills on time; setting up automatic payments helps!
- Unless absolutely necessary, avoid applying for new credit cards or taking any other actions that would trigger a hard credit inquiry.
- Read up on more tips for healing a low credit score.
Don’t Let Apartment Debt Stop You!
Debt doesn’t mean you can’t find a dang good apartment. We have apartments for rent that match any budget. Begin your search for recently-listed apartments today!