Nothing can be more devastating to credit than to have a bad rental history. If you have a bad rental history, it can be very difficult to secure housing. However, a positive rental history can sometimes be a powerful way of rebuilding credit. If your rental history is built correctly, it can be a powerful way to build and maintain your credit.
The most important way to prepare rental history to rebuild your credit is to make sure that it is “counted.” Many landlords do not pull credit reports or report credit history to the credit bureaus. Although you may be building a good history or “rapport” with your current landlord, it may not automatically translate into building a good history elsewhere.
If you believe that your landlord is not reporting your credit, you should approach your landlord to ask for an accounting of your payments. Also, ask your landlord to serve a reference for you in the future. Recommendation letters are always a good resource for the securing of future housing or loans.
Although historically, rent payments have not been recorded on credit reports, recently companies such as Experian have offered options for reporting credit. Rent-Bureau is a new service offered by Experian for this purpose. These rent payments can improve your credit. Other good resources to report your “rent” credit are www.WilliamPaid.com and www.ClearNow.com.
Although good rental history can positively affect your credit in limited situations, bad rental credit has a much more powerful effect. Evictions are absolutely devastating to credit and they are almost always reported as a lawsuit or sometimes even a deficiency in your credit reports. Having an eviction on your credit can extremely limit your housing options. Evictions are the very thing that housing providers look for when you are seeking a new housing options. They are also very detrimental in securing mortgage loans. If you have evictions and excessive debts, you should consult with a bankruptcy attorney. Bankruptcy will restore your credit to a degree and eliminate collection attempts that may cripple your budget in the future.