How much will it lower my credit score if I break my lease?

Question by geewhiz: How much will it lower my credit score if I break my lease?
I have to break my apartment lease. I was living separate from my husband, and we are moving with a job transfer to a different city. My credit score is about 750-800. If I break the apartment lease, it will go on my credit report. How much will this lower my score?

Best answer:

Answer by Lauren F
Breaking the lease itself won’t hurt your credit score. It is what happens to the unpaid rent on the remainder of your lease that could possibly hurt your credit score. For example, if there are 9 months remaining on your lease, and you leave without paying those, and the landlord has two choices. Try to re-rent the place, or sue you in court for violating the terms of your contract. If he does the first, then nothing will happen to your credit report. If he does the second (sues you) and wins a judgment against you, that becomes part of your credit score and will drop your score at least 100 points.

Read your lease carefully and see what the terms are for breaking the lease. Sometimes you can pay a penalty of one month’s rent and get out. Other times it is 60 days, and they only let you out if the place is re-rented in that time. Other times there is no “early out” clause and your only option to reduce the expense is to find someone to sublease it from you.

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