Your credit follows you wherever you go, and that includes whether you purchase a new home or move to a new apartment. But how does the process of moving affect your credit?
Credit Inquiries
When you apply for a mortgage or fill out an application for an apartment rental, the bank or landlord will most likely perform a credit check.
There are two types of credit inquiries: hard and soft. Most financial inquiries are considered hard and have the potential to negatively affect your credit, especially if you are declined. As well, lenders may see you as a higher risk if you have several hard inquiries.
If you’re concerned about the effect of a credit inquiry on your credit score, check to see if the prospective lender or landlord would accept a copy of a credit report that you pulled yourself. You’re entitled to one free credit report from each Transunion, Experian and Equifax every twelve months. Requesting the reports yourself will not affect your credit in any way.
Avoid Breaking a Lease
The terms detailed in the lease agreement will state your options if you need to terminate a lease early. You may have to pay extra fees or surrender your security deposit for an early termination. Make sure you pay any agreed amount on time. If you don’t, the landlord may have the right to take you to court or send the account to a debt collector. This type of activity will appear on your credit report and will damage your credit score.
Missed or Late Payments
With the stress of moving, often it is more difficult to keep track of your finances and make timely payments. Missed or late payments can be very harmful to your credit. Depending on how late the payment is, it could appear as a negative mark on your credit report and also lower your credit score significantly.
Mail Forwarding
Prior to your move, ensure that you will receive mail from your old address by taking the following steps:
-Notify the United States Postal Service to forward all mail to your new address
-Notify your creditors in writing of your address change
-Inform your landlord of your new address and contact information.
Seek Legal Help
Flitter Milz is a nationally recognized consumer protection law firm that represents victims of abusive collection tactics, credit reporting privacy and accuracy violations and vehicle repossessions. Contact Us for a free consultation.
