What Happens if You Don’t Pay Rent a Center and Move
When you fail to pay your rent at Rent-A-Center and decide to move without settling your outstanding balance, one of the immediate consequences is a negative impact on your credit score. Rent-A-Center, like many other rental companies, reports payment information to credit bureaus. This means that if you default on your payments, it can be recorded as a delinquency on your credit report.
A delinquency can significantly lower your credit score and stay on your report for several years. This negative mark can make it harder for you to obtain loans, credit cards, or even secure housing in the future. It’s important to note that Rent-A-Center may also send the debt to collections, which will further damage your creditworthiness.
Legal Actions Taken by Rent-A-Center
Possible Consequences of Not Paying Rent-A-Center
When you fail to pay your rent at Rent-A-Center and decide to move out without settling your dues, it’s important to understand the potential legal consequences that may follow. While I am not a lawyer, I can provide some general insights into what you might expect in such a situation.
- Collection Efforts: If you don’t pay Rent-A-Center, they will likely start their collection efforts. They may contact you directly through phone calls, emails, or letters urging you to pay the outstanding balance. These attempts are aimed at resolving the issue before escalating it further.
- Negative Impact on Credit Score: Non-payment of rent can adversely affect your credit score. If Rent-A-Center reports your delinquency to credit bureaus, it could lower your credit rating and make it difficult for you to secure loans or obtain favorable terms on future rentals.
- Legal Action: In more severe cases where attempts at resolution are unsuccessful, Rent-A-Center has the right to take legal action against you for breach of contract or non-payment. This could result in a lawsuit being filed against you in court.
Understanding Rent-A-Center’s Legal Actions
If legal action is taken by Rent-A-Center due to non-payment and moving out without settling your obligations, here are some potential steps they might pursue:
- Filing a Lawsuit: To recover the unpaid amount, Rent-A-Center may file a lawsuit against you in small claims court or civil court depending on the amount owed.
- Obtaining a Judgment: If successful in court, Rent-A-Center may be granted a judgment against you. This legally confirms that you owe them money and allows them additional means of collecting payment.
- Wage Garnishment or Bank Account Levies: With a judgment in hand, Rent-A-Center may seek wage garnishment or bank account levies to satisfy the owed amount. This means that a portion of your wages could be withheld or funds from your bank account could be seized.
Impact on Credit Score and Future Rental Opportunities
Rent-A-Center’s Collection Practices
When you find yourself unable to pay Rent-A-Center and decide to move, it’s important to understand the potential consequences that may follow. One of the major impacts can be on your credit score, which plays a crucial role in various aspects of your financial life.
Rent-A-Center is known for its aggressive collection practices. If you fail to make payments or return the rented items before moving, they may report your delinquency to credit bureaus. This negative information can significantly lower your credit score and stay on your credit report for up to seven years.
How Unpaid Rent-A-Center Bills Affect Credit Score
Unpaid bills from Rent-A-Center can have detrimental effects on your creditworthiness. Your payment history accounts for approximately 35% of your FICO credit score, making it one of the most influential factors in determining how lenders perceive your reliability as a borrower.
With late or missed payments reported by Rent-A-Center, future creditors may consider you a high-risk applicant. This could result in higher interest rates or even rejection when applying for loans, credit cards, or other forms of financing. Moreover, landlords often check applicants’ credit scores when considering rental applications, so having a poor score due to unpaid Rent-A-Center bills could hinder your ability to secure housing.
Limited Rental Options After Default
Aside from impacting your credit score directly, defaulting on rent payments at Rent-A-Center can also limit future rental opportunities. When searching for new accommodations after moving out, many landlords conduct background checks that include analyzing an applicant’s rental history.
If you have a record of non-payment with Rent-A-Center and it appears on your rental history report or is discovered through background checks conducted by potential landlords or property management companies, they may view you as an unreliable tenant who poses a risk of non-payment. As a result, you may face difficulties in finding suitable housing options, particularly in competitive rental markets.
In summary, failing to pay Rent-A-Center and moving out without resolving your debts can have serious consequences for your credit score and future rental opportunities. It’s crucial to address any outstanding payments promptly and communicate with Rent-A-Center to explore potential solutions or payment plans that can help minimize the negative impact on your financial standing.
