Houses and Credit History

Will My Old Address on My Credit Report Hurt My Credit Score?

As a general rule, no, an old address will not hurt your score. This is because an address can be found in the personal information section. Any information found within that section is for identity verification purposes only, and does not get included in the computation for a credit score. However, there are exceptions to this rule. These exceptions come in specific scenarios that you do not want to happen to you. This article will discuss the same. Tips and techniques for avoidance will also be discussed.

Identity Theft

An old address shows on your credit report because you have not yet updated the same. It is safe to assume that if you did not update it in your report you might not have updated it on some other mail matter. If the same is a rental property, then the new renters will be receiving your mail. If the same happen to be unscrupulous individuals they can use the information they got to perpetuate identity theft or credit card fraud.

When this happens, you will definitely see your credit score fall, and fast! Worst, you might just find yourself the subject of an arrest warrant. You can of course clarify the matter with your creditors, banks, lenders, credit bureaus, police and/or judge. But the sheer embarrassment and the inconvenience you will experience will be beyond words.

If the property is yours and it is not occupied, make sure that your mail matters are secure. There are identity thieves who target unoccupied houses with lots of mail matters visible in the box or form a window.

Foreclosed Property

Work at home. FreelancerSometimes consumers sell their property, but insist on keeping ownership of the same prior to a certain amount of payment or sometimes even after full payment. In some cases the property is already transferred in fact, but not in the title. There is a contract to sell of course, but the buyers are already allowed to occupy the property and sometimes even pay the amortizations directly.

This is a bad idea. If the property is still under your name, you must pay amortizations. This is because the same will still be considered as an address, albeit an old address. If the new owners do not pay amortizations, you will be the one who suffers. Not to mention the fact that your credit score will suffer as well. Remember, if you let a buyer or a tenant pay amortizations under your name for whatever reason, verify that payment has been made a few days ahead of the deadline. If the same is not paid within a specific date, you pay it yourself and have the buyers or tenants reimburse you. The same terms should be included in the contract.

Utility Bills

Sometimes, a renter forgets to disconnect all utilities and then leaves the premises. The problem is that the old address still shows in the report, or is considered the principal address. And those utility bills are still under your name. These companies will keep reporting the default until the same is charged off. Oh, a charge off is very bad news in your report, because it is there and is part of the computation for 7 years.