How Renting a Storage Unit Can Affect Your Credit

Your credit score is important when you’re buying a house or a car, but it’s not so important when you rent a storage unit. That’s because you’re not taking on any significant debt.

If you fail to pay for your storage unit, the operator will then take steps to empty your unit and rent it to someone else. That said, obtaining a self-storage unit does have a relationship with your credit score.

Failing to pay for a storage unit will damage your credit

It’s possible that renting a storage unit will hurt your credit—but only if you fail to pay for it. Storage units are typically affordable, but paying the rental fees could be a burden if you have other debts.

Like anything else, if you don’t pay your bills for storage, eventually your account will go into collections. This is then reported on your credit score, which will decline. Let’s go through what exactly happens in the event that you fail to pay off a self-storage unit.

The unit goes into default

Your account will default usually between five and 30 days after the payment is due. Check the lease agreement you signed to figure out exactly when default is enforced. At this point, the owner of the storage facility will prohibit you from accessing the unit. You’ll only be able to renew access if you pay the amount that’s past due.

Notification is sent

Self-storage businesses must abide by lien laws if they want to avoid being taken to court. The owner will attempt to contact you to inform you that you’ve missed payment. This is usually done either by phone or by mail. Some states recognize email as a valid form of communication as well. If you are behind on payments, now is the time to discuss with the owner how the account will be paid off.

The unit will go up for public sale

If you don’t settle your bill during the default period, the facility owner is permitted to advertise your unit for sale. These ads are usually published for about two weeks.

The negative impact on your credit score

If you’re not able to pay off the past-due amount and your unit goes to auction, then this will have a negative impact on your credit score. You should still try to settle up with the storage facility owner even if you’re unable to get your items back. If you’re still unable to pay the bill, the account could be turned over to a collections agency.

It’s important to read all pertinent documentation before acquiring a storage rental unit. Make sure that it’s something you can afford before signing on the dotted line.

Are you looking for self-storage solutions? Then turn to A Plus Storage Corporation. For more than 20 years, we’ve offered state-of-the-art, climate-controlled storage options. Our wide range of storage units make it possible to find one that fits your needs and budget. Contact us right now to find out more about the benefits of renting with us.

Categorised in: Storage Units