While most of the time people don’t enter into a lease agreement with the intention of breaking it, life happens and the inevitable must occur. A common question people have is whether breaking a lease impacts your credit negatively. In most cases, credit repair experts agree that your credit should not impact your credit as long as you handle it the right way. Here’s what you should know.
How To Break A Lease Without Credit Consequences
Credit repair experts recommend reviewing your lease closely and working together with your landlord to make the process as smooth as possible. If the contract says you have to pay the entire amount of your lease if you break it, then be prepared to do so. Speaking to your landlord about why you have to break your lease can be valuable since they will understand your situation a little better. The last thing you want to happen is to upset them, which could motivate them to take negative actions that could harm your credit.
What Happens If You Don’t Pay Outstanding Debts On Your Lease?
Without paying outstanding debts on your lease, your landlord could turn you over to collections. This can damage your credit severely depending on how much you owe. And while collection removal on your credit report is possible, you’ll have a hard time removing it if you deliberately don’t pay your outstanding debts. The best thing to do is work with the landlord to figure out all possible options to pay the debts and move on without going through the collections process.
Consult Credit Repair Experts With Any Concerns
Unpaid rent can show up on your credit report for seven years. So while you may be itching to get out of your current apartment or rental home, you might struggle with finding your ideal spot if you have negative marks on your credit report. Working with experts in credit repair in Los Angeles is often the best strategy to take. If you were in a situation where you’ve already broken a lease and have been turned over to collections, don’t delay in addressing the issue.
Core Credit Solutions has worked with many clients to help them with credit repair in Los Angeles. While it’s always valuable to work out any lease details upfront with your landlord, sometimes situations don’t allow for it. Our team is ready to help if you’re in financial trouble, so contact us today to schedule a consultation.