Using Credit Cards | Do not let your roommate ruin your credit
When you have a roommate it can go a long way in helping reduce housing costs which is especially useful in cities with high rents. The roommates’ financial conditions can affect yours especially if your partner does not pay bills on time. When you share address with another person, it does not affect your credit even if the person has bad credit.
This can make life easier and prevent the roommate from destroying your credit by setting rules for sharing space and bills at the beginning. Decide who will be rented, whose name will be public services and how bills will be paid monthly, it will save your credit from being ruined.
Most house owners or landlords require their occupants to be on lease thereby making all tenants to be responsible for the rent each month.
If in anyway the rent is delayed, the owner keeps track of all those who left the lease for the unpaid amount. If your roommate does not pay then you run the risk of eviction, even if you pay part for the time of each month.
Evacuation is not a walk in the park. The eviction will end in the credit report and make it more difficult to borrow in the future, especially if an unpaid balance is associated with the eviction. The eviction can even affect your ability to get a job, promotion, car loan, mortgage or credit card.
Some house owners create separate lease agreements, so only roommates who do not respect the rent are affected by payment delays. Make sure you know how to establish the lease.
What If your roommate does not pay?
Talk about the payments with your roommate if him/her is not paying. If the roommate. Make him/her know how difficult it is for you when the payment of their rent is delayed and also discuss about the risk of evacuation if your him/her does not pay. Discuss with the landlord if the talk with your roommate is not successful.
There are other options though not so attractive. You can pay your rent yourself until the end of the rental period. You can also pay a fee for terminating the lease in advance, whichever you embark on, try to avoid eviction.
The tenancy and tenant’s law defines the rights you have as tenants and roommates. For instance , you may have the right to evict a roommate for non-payment depending on how you signed the tenancy agreement or the law may allow you to sue a roommate for the rent paid on your behalf.
Most Roommates also share utilities. Sometimes public services are paid directly to the owner, but public services are often on your behalf or a roommate. You are ultimately responsible for invoices on your behalf regardless of oral contracts with your roommate. it is important to pay the bills for which you are responsible and try to collect them later from your roommate. This may mean taking a roommate to a small Complaints Court.
When the utilities are on your behalf
Make known a copy of the invoice to your roommate when you are asked to give him/her your share before the deadline.
When it’s time to move out, ensure you disconnect the services or make your roommate changed the utilities to his or her name.
When the utilities are not in your name:
Request a copy of the bill each month in advance of the due date from your roommate. Ensure the bills are being paid and that your roommate is being honest about your part of the bill. failure to pay utilities by your roommate in their name won’t affect your credit unless you’re also listed on the account, but your roommate’s failure to pay can leave you in the dark.
Before you leave your roommate, make sure all the bills in your name are paid even if you have to pay them yourself. Unpaid bill can affect your credit score, considering it takes seven years for most negative information to fall off your credit report.