As I understand it, paying rent on an apartment in the US can positively affect your credit score. But when someone has a guarantor with their lease, is their credit touched at all, or is their paying rent now only affecting the guarantor's credit?
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What country do you live in?– NL - SE listen to your usersCommented Aug 19, 2014 at 15:08
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I live in the United States– RobzCommented Aug 19, 2014 at 15:47
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1 Answer
I believe the normal scenario with a guarantor is that they are considered co-signers on the lease (in fact, in many cases that is the language that is used). I would therefore expect that similar to what is done when you have other co-signed obligations like loans and credit cards, both of your credit will be affected as if each of you had the lease and was making the payments.
Of course, I can imagine different scenarios. Asking your landlord how (and if) they report your payment behavior to the credit rating agency will likely clear up the question in your case. I'm quite confident that if anyone's credit is affected by the rental relationship, it will be that of the person living in the apartment and who is making the regular payments.
BTW, I've rented a number of different apartments and none of it has ended up on my credit reports yet. Of the three agencies, only Experian even has the capability to use your rental payment history and I don't most landlords use it. Of course, if you don't make payments and it goes to a collections agency or you get evicted, that's a different story.
