A good credit score helps you get lower interest rates and fees for borrowing money. Landlords may report late payments to credit bureaus, which can hurt your credit score. Landlords generally must subscribe to a credit agency's service before they can report late rental payments. They must meet strict federal standards and tough technology safeguards to qualify for a subscription. Therefore, small landlords are less likely to subscribe and report late payments than large landlords.
Some lenders require referrals and rental payment histories from landlords when you apply for credit. Therefore, even if late rental payments do not appear on your credit report, a bad recommendation, or poor payment track record, can hurt your chances of getting a mortgage. Also, court judgments typically show up on credit reports. So, if your landlord sues you for unpaid rent and receives a judgment against you, it can show up on your credit report and lower your credit score.
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