Can a creditor give a debtor bad credit?

In many cases, the creditor will give a bad credit rating by reporting a late payment or failure to pay to a credit reporting agency. A bad credit rating may affect the ability to take out a loan or to get credit cards, buy a house or even to rent an apartment. Creditors know that the best way for a consumer to clear up a bad credit rating is to pay the debts appearing on credit reports.

The information on this page is meant to provide a general overview of the law. The laws in your state and/or city may deviate significantly from those described here. If you have specific questions related to your situation you should speak with a local attorney.

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