Will too Many Credit Cards Hurt my Credit Score?

While you may be worried that you have too many credit card accounts open, the truth is that there isn’t a magic number of credit cards that is “right” or “wrong”. With that being said, there are some important things to know about holding multiple credit card accounts at the same time.

The average credit cardholder has approximately 5 to 7 credit cards. This includes open and closed accounts. There is no cutoff number where we would tell you “You have too many credit cards,” because what we are more concerned about is your debt to credit ratio.

What Is a Debt to Credit Ratio?

Essentially, the debt to credit ratio means: how much of your total available credit (on all of your credit cards) have you used? In other words, if you have a total of $10,000 of credit available to you spread out over any number of cards and your current balances add up to $9000, you have a very high debt to credit ratio of 90%.

Why is this number important?

The reason why your debt to credit ratio number is significant is because it plays a big role in determining your credit score. Ideally, you want to keep your total credit card balances at 30% or less of the credit you have available to you.

You can have a really great debt to credit ratio with 10 credit cards (many people open cards in order to take advantage of different “points” systems), and you can also have a poor ratio with only one or two credit cards.

How Can I Improve My Debt to Credit Ratio?

While opening new credit cards would seem like the most logical strategy to increase your total amount of credit available, it is important that you don’t open multiple new accounts in quick succession.This will send up a red flag to credit reporting agencies because it may mean that you are borrowing money that you won’t be able to repay.

Try opening one or two new credit cards per year in order to gradually boost your total available credit. More importantly, make sure that you are paying your monthly minimums (or ideally, more) in a timely manner on a consistent basis. In fact, this is actually more important than your debt to credit ratio number. Your credit score is calculated by looking at a number of your financial habits, your income and your total debt. Approximately 65% of your credit score is based on how well you stay on top of paying your bills.

Additionally, your credit score will improve if you have a variety of types of credit. Credit diversity makes up about 10% of your credit score.

If you feel you have too many credit cards because the balances are way too high and you’re having trouble making payments, your problem lies in your debt to credit ratio rather than how many credit cards you have.

To reduce your total amount of credit card debt, you can choose one of many effective and proven methods. If you have already attempted to reduce your credit card debt and feel like you are drowning in debt you’ll never be able to repay – filing for New Jersey bankruptcy may be an option that you should consider.

Image: “Credit Cards” by Sean MacEntee – licensed under CC 2.0

Do You Understand Your Mortgage’s Fine Print?

Now that the housing/mortgage crisis has begun to level out in most parts of the country, it has once again become a buyer’s market, and this time in a much more reasonable manner. Interest rates are good, but not unbelievably good like they were leading up to the 2007 crisis. As we all know by now: if something seems too good to be true, it probably is.

Just because we’re looking at the US Financial Crisis (2007-2008) in the rear view mirror doesn’t mean that getting a mortgage loan today comes without risks, though. In fact, there is a lot to be learned from the mistakes made a decade ago.

In order to ensure that you aren’t getting yourself into something you can’t handle or something that will change over time (and not in your favor) – you simply MUST have a complete and solid understanding of everything contained in your mortgage agreement.

To most people, this probably sounds like common sense. But have you ever looked at a real, live mortgage agreement? They are very lengthy with a lot of industry jargon that can quickly spin you into a confused puddle on the floor.

Your best bet is to find a New Jersey lawyer with real estate knowledge. Make sure you trust him and his team implicitly – in all likelihood a paralegal may also work with you on real estate matters, so be sure to meet everyone in the office who will be helping you understand your documents.

Questions to have ready for your attorney and/or paralegal include:

  • Is my rate variable or fixed? If the answer is variable, find out the lowest fixed rate that you’ll be able to lock in your loan.
  • Will there be penalties if I have to break my mortgage contract?
  • Am I required to pay mortgage insurance? If so, find out why. You may be able to work with a different lender who will not require mortgage insurance. If mortgage insurance is non-negotiable, be sure to ask how long you’ll be paying it, because it can often be a significant sum.
  • How long does my mortgage loan last? Will different terms lower my monthly payment?
  • What fees am I required to pay up front and are there any fees that were tossed into the total loan amount?
  • Do I have a balloon payment clause?
  • What are mortgage “points?”
  • Is a down payment required?
  • What is my monthly payment?
  • What is my credit score? We left this question until the end for a reason. We wanted to leave you with it on your mind. Finding out your credit score should be one of the first things you do even before you begin applying for mortgage pre-approval.

Your credit score will have a significant impact on the interest rate you will be offered by lenders. If your score is less than desirable, or even “fair”, talk to your NJ real estate attorney and paralegal about waiting to buy a home until you can boost your score into the “good” or “excellent” range. Work with your trusted legal team to raise your credit score. They will also be able to guide you in determining the best time to jump into the real estate market so that you qualify for the best loan options. This will save you a lot of money throughout the length of your mortgage.

 

 

Images: “Chocolates 1” and “Chocolates 2” by Windell Oskay – licensed under CC 2.0

Can I be Evicted Due to my Roommate’s Poor Credit?

Moving in with a roommate can be a great way to split expenses – both rent and utilities. It can also be an extremely fun time in your life as you venture out on your own and begin to explore the world as an adult.

Naturally, deciding to live with someone, whether in your early 20s or later in life, is a big decision and one that must be taken seriously. It’s in your best interest to make sure that the person you choose to live with is trustworthy and easy to get along with. Failure to take the time to find a roommate who meets these criteria can lead to a very miserable living situation.

However, the single most important trait to look for in a potential roommate is financially responsibility. The following “red flags” indicate a deficiency in the money department and should give you significant pause in selecting your cohabitant:

  • Poor credit score (under 620)
  • History of being evicted for non-payment of rent or utilities
  • Frequent moves from one rental to another – This indicates that they may be more likely to break the lease they sign with you.
  • Tells “horror” stories about all past roommates – The whole “it’s not me, it’s them” scenario – if it keeps repeating itself in someone’s life, this is probably not a person you want to live with.
  • Poor references – Ask potential roommates if you can get in touch with someone they used to live with. Today, this can be as simple as a Facebook introduction and a five minute online chat. Look for answers about paying rent, utilities and security deposits as well as paying for any damages that occurred during the length of their lease.
  • Doesn’t hold a steady job or is only employed part-time – Make sure that they pull in more than enough income to pay their portion of the monthly bills.
  • Inability to put down a deposit

If you plan to apply for a joint lease once you find the right roommate, the property owner (landlord) will almost certainly check both of your credit scores. Even if you have a sparkling credit history and a high score, a landlord can decide not to rent to you if your roommate has dings on their credit report.

Typically, landlords won’t turn away potential renters who only have a few dings in their credit history, but if your roommate is saddled with a significant amount of debt, their credit score has likely suffered because of it.

Perhaps you already have an apartment rental and you want to take on a roommate without adding their name to the lease. Depending on the language of your specific lease agreement, you may be required to add any official occupants’ names to the lease. If this is the case, your new roommate’s credit score can prevent them from joining you in your rental.

Knowing that your possible bunkmate has a dubious financial history, you may be tempted to lie by omission and have them “move in” without officially telling your landlord. While this may temporarily avoid a credit check, it may end in disaster if your landlord discovers your covert roommate. If this happens, you and your undisclosed roommate will likely be evicted for failure to follow the rules set out in the lease agreement.

If you feel that you have been evicted unjustly, you should make yourself aware of your rights as a New Jersey tenant.

 

Image: “Moving Day Boxes” by Nicolas Huk – licensed under CC by 2.0

5 Expert Recommended Methods to Raise Your Credit Score

If you are researching how to raise your credit score, regardless of the reason, we give you major kudos. Perhaps you are trying to repair a credit report that was damaged due to years of poor financial choices. On the other hand, maybe your credit score is fair and you’re getting ready to make a big change in your life that will be much easier with good to excellent credit, like buying a new house or starting a family.

You should always strive to have the best credit score possible, but many people experience dips in their credit score just as we experience ups and downs in life. Such is the nature of the beast. In order to raise your credit score effectively, we’ve gathered some expert-recommended tips that can make a significant difference in your overall credit report and number.

Before making any changes, you’ll want to make sure you pull your own credit report and have a good look over everything listed on it. Comb through each credit report from the three main credit reporting bureaus (Equifax, Experian, and TransUnion) very carefully to check for any mistakes that may have been made like debt that is being reported that doesn’t actually belong to you.

You can contact the reporting agency about any errors on your own or you can work with a New Jersey credit repair attorney to help you make the contact and clear up any errors that may be unnecessarily dragging your credit score down.

After you have determined that there are no errors currently weighing down your score, take the following expert-recommended steps to boost your score higher than ever before:

Pay monthly credit card bills before their closing dates

Even if you are managing to pay your credit card bills in full each month, you may be paying after your lender has already reported your balance to the credit bureaus. This will make it seem that your balance is high every month. What you must do is contact your credit card company or lender and ask when they make their monthly credit bureau reports. Henceforth, make your monthly payment well in advance of that credit card company’s closing date so that your balance will be reported to the bureaus as zero.

Create a debt paydown strategy

In order to optimize your credit utilization ratio (which means keeping it lower than 30% but optimally under 10%), work hard to pay down the balances on your card(s) that have the highest balances first.

Pay your debts every time you get paid

Most people pay their bills once a month, but there is a better way! Since it is common practice for most employers in the US to pay their workers on a biweekly basis, make it your new practice to make two payments on your credit card debt per month. Pay your monthly minimum as soon as you receive your first paycheck of the month, and then pay a little bit more with your second paycheck of the month. This will nudge your balance down much more quickly than only making one payment per month.

Lower your credit utilization ratio by requesting a higher credit limit

Although this is something that should not be attempted if you don’t trust yourself to stay within your own self-imposed spending limits, requesting a higher credit limit from your credit card company can lower your overall credit utilization ratio. Naturally, this will only work as long as you refrain from racking up anymore debt.

Consolidate multiple credit cards from the same issuer

With the ultimate goal of keeping your total credit limit the same, if you have more than one credit card with the same institution, consider requesting a consolidation of those cards. The goal of this is to increase the average age of your overall revolving credit, so request that your newer card be combined into the older card. This will eventually eliminate that newer card from your credit history and your debt will have an older overall age, which will help improve your credit score.

 

Image: “5” by Steve Bowbrick – licensed under CC by 2.0

Bankruptcy Law and Family Law: How They’re Connected

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Anyone who has been through a divorce knows that, second only to your love life, your finances are often the hardest hit area during a split. Many people continue to have financial difficulties long after their divorce is finalized, as well. Family lawyers who handle divorce cases know from experience that financial strife can be a huge contention between divorcing couples.

While your family law attorney will assist you in creating a Property Settlement Agreement that settles some of your money troubles (you may begin receiving child support or alimony payments after the divorce is finalized), oftentimes divorced couples will struggle with things like losing their family home to foreclosure, credit card debt, and potential bankruptcy.

As much as your divorce attorney may want to assist you with all of the above money matters, they have to focus their attention on everything within their own wheelhouse to ensure that you (and their other clients) achieve the desired outcome from your divorce. Their duties are many, and include drafting your PSA, attending court dates, negotiating and corresponding with counsel for your soon-to-be ex-spouse, handling domestic violence matters, and much more.

Frequently, family law attorneys find it very beneficial to work in tandem with an attorney who specializes in bankruptcy, real estate and/or debt relief. Because financial strain is a given in most divorces, it can be helpful for everyone involved to work as a team. Your divorce (family law) attorney will walk you through all of the steps of your divorce. With your permission, ideally he would then discuss your case with his tandem bankruptcy attorney, whom you would then work with to clean up your finances.

Of course, family law attorneys attend to matters other than divorce, like name changes, parenting time, grandparents’ rights, pre-nuptial agreements, child custody (unrelated to divorce), adoption, restraining orders, and domestic violence. Some of these matters can also be made easier by working with an attorney who specializes in finances. For example, the financial aspect of adoption matters can be quite intense. While your family law attorney will handle much of the adoption paperwork, he can refer you to a financial specialist like Veitengruber Law if you need more help organizing the necessary finances.

Every attorney has a lot on their plate every single day, regardless of their practice area(s). The best attorneys limit their focus to a limited number of practice areas so as not to get overwhelmed and spread too thin. If your family law attorney attempts to do it all himself, you may find that he’s too busy to set aside time to keep you updated on your case. On the other hand, a smart divorce lawyer will say, “Hey, while I’m working on negotiating your child visitation schedule, why don’t you go see George Veitengruber to start sorting out the fact that you can’t afford your mortgage payment?”

When attorneys work together, their clients always have a better result. Mutually beneficial relationships between experienced professionals give clients a well-rounded experience and optimal outcome. Veitengruber Law welcomes family lawyers in New Jersey (Monmouth, Ocean, Mercer, Burlington, Camden, and Gloucester Counties) to reach out to our firm if and when your clients need our services. We will gladly return the favor so that our mutual clients are well-cared for and happy with our services.

Image credit: Kamaljith KV

I Received a NJ Bankruptcy Discharge: Now What?

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Having all or many of your debts erased in a New Jersey chapter 7 bankruptcy is referred to as a bankruptcy discharge. Most people filing for chapter 7 feel a great relief when their discharge is granted.

While you are deeply immersed in the bankruptcy process, it can be easy to view your discharge as the finish line. However, once you’ve passed that finish line, you’ll have new goals to reach for, and achieving these goals will be the true measure of your future financial success.

After bankruptcy, you’ll be aiming for repairing your credit score, which will take a hit when your bankruptcy is reported. Lenders will want to see that your credit score is slowly rising post-bankruptcy. While this isn’t always easy to do, it’s definitely not impossible. You can:

Apply for a secured credit card – While significantly different from a traditional credit card, secured cards are backed-up by money you pay up front. While few banks will see you as an ideal borrower right after bankruptcy, some offer secured card programs to borrowers who need help rebuilding their credit. This is a temporary solution that you should only use until your score rises enough to make you eligible for a traditional credit card.

Apply for a secured loan – This type of loan typically involves a credit union or a local community bank. You can either “borrow” from funds that you supply to your own loan account, or borrow money wherein you must make certain necessary payments before any funds will be released to you. While not a typical loan, these baby steps help your credit score because your loan activity will appear on your credit report, helping other lenders to see that you’re moving in the right direction.

Ask a family member to co-sign a loan or credit card – It’s true that we typically do not advise our clients to co-sign loans for friends or family members. A co-signer is putting a lot of faith into you, because they are essentially letting you “borrow” their good credit. The only times we recommend considering co-signing is after bankruptcy and when you truly have zero other options.

Request to be an authorized user – An alternative to finding someone to co-sign a loan or credit card is to request to be listed as an authorized user on a family member’s credit card. This is probably the option that will have the least positive effect on your credit score, but it can help a little bit. However, ensure that the lender in question reports all payment activity to credit bureaus for all authorized users, not just the main account holder.

As you begin your journey post-bankruptcy, the most important thing you do will be to make every single payment you owe to anyone ON TIME. This includes the aforementioned secured loans as well as utility bills and any other monthly expenses. Bankruptcy discharge should have given you a huge break from significant debts, leaving you with enough money to pay for your living expenses with a little bit left over each month. This means there are no more excuses for late payments.

When we work with a bankruptcy client, we also offer credit repair assistance after your discharge. If you’ve received your NJ bankruptcy discharge and you’re still struggling, we’re here to help you figure it all out.

Image credit: John Eisenschenk

Can a NJ Lender Foreclose for Late Payments Only?

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Like millions of Americans who own their own homes, your largest monthly bill is most certainly your mortgage payment. This is especially true if you’ve wrapped your property taxes in with your mortgage loan. Paying your mortgage each month can feel physically painful at times, especially if you have to write out all of those numbers on a paper check. OUCH.

Nonetheless, you obviously knew what you signed up for when you applied for your current mortgage, so its appearance each month doesn’t necessarily come as a surprise. Why, then, are so many Americans habitually late in paying for this particular loan?

The answer to that is simple. A large percentage of homeowners in this country are living paycheck to paycheck – earning just enough money every month to fulfill their financial obligations. This leads to tense moments when there simply aren’t sufficient funds in the bank to make the huge mortgage payment without fear of bouncing a check.

Nobody wants to bounce a check – we all know that. The hassle combined with added fees from your bank AND your lender mean that bouncing a check is an extremely costly mistake. Instead of potentially writing a check that can’t be cashed, many homeowners simply wait until their bank account has enough money to fulfill the mortgage payment. Sometimes this means the mortgage payment gets sent in a few days (or weeks) late.

The question here, is: Can a lender foreclose on a homeowner if they are chronically late with their mortgage payment? To clarify, we’re talking about a borrower who hasn’t actually missed any payments and technically isn’t “behind” on their mortgage – only slightly late with nearly every payment.

The short answer is that almost no lender will move toward foreclosure if the borrower isn’t actually behind on payments. That’s not to say it has never happened, but if it has, it’s exceedingly rare. In most cases, lenders don’t send out ‘Intent to Foreclose’ notices until a borrower has missed 3 full mortgage payments. Some lenders will threaten foreclosure after one missed payment, but as long as you can bring the mortgage current, they back down.

What can happen to you if you consistently pay your mortgage (or any other monthly bills) late is that your credit score can drop. Even though you may avoid foreclosure, late payments are often reported to credit reporting agencies, and each late payment will ding your score a few points. If you’re late every month for a year, your score may have dropped over 100 points.

If you’re currently struggling to pay your mortgage in a timely manner, there are some things you can do. First, check your credit score to see how much damage you’ve done. That gives you a good starting point. Next, get in touch with your lender and tell them why you’re having trouble paying on time. You may benefit from changing the time of month that your payments are due, paying online, or paying via telephone when your bank account is primed and ready.

If none of the above options is enough to alleviate your tardiness, you may benefit from applying for a NJ loan modification. You can apply for one on your own, but many times a real estate attorney can negotiate with your lender much more effectively, working to extend the life of the loan, reduce the principal amount due, erase late fees, and maybe even lower the interest rate on the loan. One or a combination of these modifications can make paying your mortgage on time much more manageable.

 

Image credit: John Lloyd

How to Start a NJ Business When You Have a Poor Credit Rating

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If getting out of corporate America by becoming your own boss is your main goal as we roll into 2017, there are a lot of steps you’ll need to take to make it a reality. Starting your own business is without a doubt a challenging undertaking, but it has been done by many before you, so take heed that it can be done! However, if you’re starting the process with a low credit score, you’re already a bit behind the eight ball. Rest assured, though, that this does not mean entrepreneurship can’t happen for you.

Facing the fact that your credit score is less than ideal can be difficult, especially if you’ve managed to “get by” for years without giving it too much thought. By taking no action at all and simply burying your head in the proverbial sand, your score will never improve. Since starting a business is important to you, you’ll have to make smart borrowing choices that will enable you to launch while increasing your credit score simultaneously. In turn, you’ll have access to more financial resources later when your business expands, because your score will have gone up. It is more important to have a good credit score as your business grows, so you have that on your side. You’ve got nowhere to go but up!

In order to get your business off the ground, try these approaches to getting the start-up cash you’ll need:

  • Phone a friend. If you’ve ever watched an episode of Shark Tank, you’ve probably noticed that many of the entrepreneurs on the show report getting a large percentage of their start up costs by asking friends and family for loans (or investment in the company). While it may be difficult to ask loved ones for financial help before you have established your new company, this is one way you can avoid your low credit score prevent you from borrowing money.
  • Apply for grants. Although it can be very challenging to find a grant program that is willing to donate money to your new start-up, it is possible. This is especially true if your company is in the healthcare field or is a retail business in a struggling geographical location. Downtrodden areas with lower-income residents are frequently looking for new businesses to give a boost to their current economic status.
  • Look for a microloan. It is what it sounds like – a tiny loan, but if you have exhausted all other options, something is better than nothing. Lenders that are not affiliated with a bank do exist, and for many of them, their main purpose is helping entrepreneurs with low credit scores. Not only are they more likely to lend you money than a traditional bank or lender, but borrowing from them will also cause your score to rise! Naturally, that will only occur if you’re making your required payments on time, but with microloans the payments will be much more manageable.

The most important thing to remember if you dream of starting your own business is this: don’t give up just because of a low credit score. Today’s society revolves around the buying and selling of goods and services – now more than ever before!

Additionally, for those who are contemplating starting a business in New Jersey – our state welcomes you and wants to help you find the resources you need to succeed. More business in the Garden State means a better NJ economy! To learn more about special financing and incentives available to you, visit The Cornerstone of Financial Justice, where you’ll receive full service solutions to your credit score and business loan challenges.

 

Image credit: CCPixs

Am I Responsible for the Ambulance Fee if I Refused Transport?

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The cost of being transported to a local hospital via ambulance can make anyone’s jaw drop. Even a short, one block drive wherein they provided no EMT assistance can easily be billed at $750+. While it’s true that most insurance companies do cover ambulance transport, high deductibles and lack of adequate insurance coverage often leave patients responsible for the full amount.

Imagine the following scenario: You were involved in a minor accident, whether automobile or otherwise. Finding yourself either without injury or having sustained only minor injuries, you decide to make your way to the hospital on your own. Bystanders, other drivers, or security personnel who witnessed your accident, however, may have deemed it necessary to call 911 on your behalf. What happens, then, when you’re surprised by the arrival of a bleating ambulance that you feel you never even needed?

Many patients have reported being informed that they could not refuse transport via ambulance in NJ. One man was essentially strapped down against his will (he had a broken arm and was unable to resist) and driven to the hospital. The drive took 2 minutes, and no treatment was given throughout his ride in the ambulance other than stabilization of his arm. A week later, the man in this scenario was billed almost $1000 for the ambulance service.

Another scenario played out like this: After a minor fall at work, a woman found herself with a minor abrasion on her leg. It was a surface abrasion, and she had it cleaned and bandaged by her company’s in-house nurse. A security officer witnessed the accident (it was a minor trip and fall that the patient acknowledges was no one’s fault but her own) and called 911. The woman was already back at her desk working when she was surprised by the arrival of an ambulance. She refused transport, but it wasn’t easy to convince the emergency medical team members that she did not need treatment. They eventually left without her, but she too received a bill for an ambulance ride that she never even took.

Who is responsible in these (and similar) scenarios? Finding yourself with a hefty medical bill that you can’t afford can be overwhelming – but what should you do if you feel that you’re not even responsible for the bill?

In every situation where you’re faced with a medical bill that either isn’t covered by your insurance, or is still more than you can afford even with insurance coverage – the best course of action is to negotiate. Almost every medical bill can be negotiated, either before treatment occurs, or after it has been administered, and this includes ambulance transportation.

If you don’t want to deal with a huge hassle and you did actually receive transport via emergency vehicle, you can call the provider and tell them what you can afford to pay. Many times, you will find that they are happy to receive at least a portion of the billed amount. They may also work with you to set up a payment plan so that you can pay the bill off in installments.

However, if you refused emergency transportation altogether and are still being aggressively billed (with no sign of them backing down), you should schedule a free consult with a New Jersey debt resolution attorney. If you decide to retain their services, you will very likely pay the attorney much less than you would have paid the ambulance service, and you will have the satisfaction of not paying for something that you didn’t receive. Additionally, taking proactive steps to resolve the matter will prevent the ambulance bill from dinging your credit report.

Image credit: Lauren Siegert

Evicted with No Lease in NJ: Will it Damage My Credit?

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If you’re a renter in New Jersey, you may have signed a long and detailed lease with your landlord. Rental leases are used to set out specific terms that must be adhered to by the tenant(s) as well as the landlord (property owner). Signing a lease can give renters the security of a guaranteed place to live for a specified length of time. A lease also stipulates the amount of monthly rent to be paid to the property owner throughout the duration of the contract.

Can I move in with my friend without signing his lease?

Oftentimes, a rental lease specifies whether or not the tenant may take on a roommate during their stay in the rental property. Some leases require that any new roommates sign their name to the lease; however it is more commonly found that tenants can obtain a roommate without having them sign anything.

If you are a roommate who has been living in a rental without having signed any lease paperwork, you may have questions about your rights. Since the original tenant signed the lease, he or she has a clear understanding of their renter’s rights. Although you don’t have the benefit of a written lease, since you are renting in New Jersey, you have what is known as a verbal lease.

Non-leased renters in NJ who are staying in a rental unit with the permission of the property owner are granted an automatic 30-day verbal lease. The oral agreement you and the original tenant formulate with your landlord constitute the contents of your verbal lease. Naturally, verbal leases are much more difficult to uphold, and tend to be quite problematic.

It is recommended that you get some kind of written agreement from your landlord so that you don’t end up in court over what may very well be an inconsequential issue. Landlord/tenant disputes can turn into bitter court battles, and without anything in writing, you’ll have a much harder time defending yourself and your position as a non-leased renter.

Can a landlord evict a tenant who doesn’t have a written lease?

Property owners can definitely evict tenants without a written lease in place, but the process is a lot messier for all parties involved. Whether you moved in with a leased renter or if you were simply granted verbal permission to stay in a property with no lease, you are not safe from eviction.

There are a myriad of reasons that justify evicting a renter of any kind, including:

  • Violation of health, safety or conduct laws
  • Damaged property
  • Missed or habitually late rent payment(s)
  • Illegal activity (drug use, assault) in the rental property
  • Theft or destruction of landlord’s property
  • Disturbing the peace
  • Decision of property owner to stop renting

Even if you did not sign a written lease, you can be evicted for any of the above reasons.

Will an eviction damage my credit score?

Generally, being evicted in New Jersey will not be indicated on your credit report. However, unpaid rent or lawsuits that were filed against you by the landlord may show up on your credit history. Additionally, the next time you apply to rent an apartment in NJ or elsewhere, your new landlord or property manager is likely to perform a background screening, during which they may discover that you’ve been evicted before.

Image credit: Angela Rutherford