How Breaking a Lease Can Impact Your Credit Score | Equifax

Highlights:Rental payment data may appear on your credit report.Failure to pay penalties from breaking a lease can impact your credit scores if the debt from the penalties is turned over to a collection agency.If a collection agency reports your debts to Equifax, Experian or TransUnion that could negatively impact your credit scores for up to seven years.Question: My girlfriend and I live in a large city and have been stuck in our shared studio apartment. We've been seriously thinking about moving, but our lease isn't up for another six months. Will our credit scores be affected if we break our lease?Answer: Rental payment reporting is handled differently by the three nationwide reporting agencies (CRAs) — Equifax, Experian and TransUnion. Depending on how your property management company reports the data, it may appear on your credit report. So, it's important that you are mindful of the lease agreement conditions. Leaving your studio without providing advance notice, finding a sublet...