When you rent a space with your local storage company for the first time, it’s natural to have some questions. For instance, does renting storage space affect your credit score? Does not paying a storage unit affect your credit? These are common questions, and they are ones that we’re here to answer. Here’s what you need to know.
How Renting a Storage Unit Can Affect Your Credit Score
You Don’t Need Good Credit to Rent a Storage Unit
Renting a storage unit is not like renting a house or an apartment. When you rent a house or an apartment, you’re typically asked to show proof of a credit score that’s above a certain threshold. This is mostly to protect your landlord’s investment and to make sure that you have a history of paying your debts on time. For storage units, you’re not taking possession of anything, nor are you inhabiting any space. For a rental like this, there’s no need to worry about your credit score history. Storage units can pretty easily be emptied if you don’t pay your monthly bills, which means self-storage companies aren’t going to worry about credit checks before you sign up to rent a unit. So if you’re nervous about applying to rent a storage unit because your credit score isn’t amazing, you’re going to be just fine.
Some Storage Facilities Offer Credit Reporting Services
While you may not need to check your credit score before looking at storage for rent, it’s still important to pay attention to the billing services your storage company provides. Some facilities use what’s called “credit reporting” as a service for their customers. This service entails the storage company reporting the status of your bill each month. The process is fairly similar to credit card or personal loan statements. While not every storage company performs this service, those that do could affect your credit score. If you’re late on a payment and your storage company does credit reporting, then you could be risking a strike on your credit score. The good news is that paying your bills on time if you currently have bad credit could be beneficial to your score, especially if your storage facility does credit reporting. This service isn’t offered everywhere, so make sure you ask about it when you need a storage rental.
Failure to Pay Bills Could Hurt Your Credit Score
A storage unit can affect your credit score positively, but only if you’re paying all of your bills on time. Failure to continue paying your monthly bill in a timely manner can lead to the debt being passed on to collections. This is the last thing you want because anything that goes to collections will be reported on your credit report. As a result, your score will inevitably go down. In addition, simply paying the balance isn’t enough to repair your credit score. Instead, you need to pay your balance and put in a formal request that the strike is removed from your credit report entirely. Don’t let this happen to you!
If you have questions about renting a storage unit in Jackson, TN, don’t hesitate to contact our team at Markham Self Storage today. We’re here to answer all of your self-storage questions!