Do Storage Units Run Your Credit? How Your Score Is Affected

Renting a storage unit often brings practical considerations to mind, such as unit size or location, but a common question also surfaces regarding credit checks. For most standard self-storage rentals, a hard credit inquiry, which can impact a credit score, is not performed. This article clarifies what information storage companies collect and how your credit can be affected in other scenarios related to a storage unit rental.

Do Storage Facilities Run Credit Checks?

For most standard self-storage unit rentals, facilities do not conduct a hard credit inquiry that could negatively affect a credit score. Unlike a loan or an apartment lease, a storage unit rental is viewed as a service paid for upfront, often month-to-month. This model reduces the need for an extensive financial background check. While a soft credit check is uncommon, some facilities might perform basic identity verification, which could involve checking public records without impacting your credit score.

Exceptions to this practice are rare but can occur, particularly for specialized storage services, such as long-term commercial leases or for high-value items where the facility might assume more financial risk. Even in such cases, the primary focus remains on securing payment rather than assessing a borrower’s creditworthiness. Self-storage operators have historically relied on lien laws, which allow them to claim and sell stored property to recover unpaid rent, rather than extensive credit screening.

Information Storage Companies Typically Collect

Instead of running credit checks, storage companies focus on collecting information necessary for identity verification, contact, and payment processing. Renters are required to provide valid government-issued identification, such as a driver’s license, passport, state ID, or military ID. This ensures the person renting the unit is legally eligible and accountable for the rental agreement.

Beyond identification, personal contact details like your name, current address, phone number, and email address are collected to facilitate communication regarding the unit and payments. Facilities require details for the chosen payment method, including credit card, debit card, or bank account information for direct debit or automated payments. This information establishes the rental agreement and ensures timely payments.

How Missed Payments Can Affect Your Credit

While the initial rental of a storage unit does not involve a credit check, failing to make payments can significantly impact your credit score. Storage companies do not report on-time payments to credit bureaus, so a storage unit rental will not help build your credit history. If rent goes unpaid, the situation can escalate, leading to negative entries on your credit report.

If payments are missed, the storage company may send the overdue debt to a collections agency. Collection accounts are reported to credit bureaus, such as Experian, Equifax, and TransUnion, and can drop your credit score. A collection record can remain on your credit report for up to seven years, affecting your ability to secure future loans, credit cards, or even housing. Storage facilities can also place a lien on the stored property, allowing them to sell the contents at auction to recoup the unpaid balance. If the auction proceeds do not cover the full debt, the remaining balance can be pursued and sent to collections.