What Does an Eviction Do to Your Credit? Does Being Evicted Affect Your Credit Score? How Long Does an Eviction Stay on Your Credit?

Do Evictions Show Up on Credit Reports?

Evictions do not directly show up on your credit reports, unlike some other financial actions. However, there are related actions that can be reported to the credit bureaus, which may impact your credit,

Collections: If your landlord sends your unpaid rent or fees to a third-party collection agency to recover the money owed, this collection account can appear on your credit report.

Legal judgment: If your landlord takes legal action against you, such as filing a civil lawsuit and winning a judgment, this legal action becomes a part of the public record and can also appear on your credit report.

What Does an Eviction Do to Your Credit? 

Certain actions taken by your landlord afterward can have negative effects on your credit. If your landlord turns your unpaid rent over to a collection agency or files a lawsuit against you, these actions can harm your credit score. Accounts sent to collections are one of the worst things that can appear on your credit report, and they can significantly lower your credit score. These collection accounts can stay on your credit reports for seven years.

The most crucial factor influencing your credit score is your payment history, accounting for 35% of your credit score. If you settle your outstanding debts, some newer credit-scoring models may exclude paid collection accounts from their calculations, potentially helping to improve your credit scores. However, any legal judgment resulting from the eviction will remain on your credit reports for the same seven-year period, which future lenders and landlords may review.

Credit bureaus typically don't automatically collect information about rent payments, but if they receive this data, they can include it on your credit reports. Positive rental payment history can be beneficial when applying for loans, especially for buying a home. To build credit through rent payments, you can use rent reporting services with cooperation from your landlord. This process may require some effort but can be simplified with the right tools.

Does Being Evicted Affect Your Credit Score? 

Evictions, on their own, do not directly affect your credit reports, so they don't impact your credit score like other financial delinquencies might. However, it's important to understand that your rental history, including any past evictions, can still affect your ability to rent in the future.

Landlords often use tenant screening services to access your rental history, and if they find a history of evictions, it can make it more challenging to get approved for a new lease. It's worth noting that credit bureaus typically do not collect information about evictions, so these events do not appear on your credit reports.

How Long Does an Eviction Stay on Your Credit?

Typically, evictions remain on your record for a duration of seven years. Once this seven-year period has passed, the eviction is removed from public records, including your credit report and rental history. However, it's important to note that they may still appear on tenant screening reports for the same duration.

If you're applying for a lease, you can inquire with the landlord or leasing company about the tenant screening company they use. Contact that company to verify whether the eviction information is still present. If you believe there's inaccurate eviction-related debt on your Experian credit report, you can access your free Experian credit report online to check for any collection accounts. If you find inaccuracies, you can dispute them through the online Dispute Center.

How Many Points Does an Eviction Drop Your Credit Score?

When an eviction leads to a collection for the outstanding debt, it can lower your credit score by up to 100 points, and this impact can last for seven years unless it's removed earlier. The good news is that you can dispute eviction-related collection records on your credit report if the information isn't entirely accurate. While you can do this on your own, it can be a time-consuming process. Alternatively, you can seek assistance from professionals like Credit Glory, who specialize in helping individuals dispute such claims.

How to See Eviction on Credit Report?

To find out if a potential tenant has an eviction history, you can use a couple of methods,

Court Records

• Visit your state's official website, as court records can be searched by state.
• Search the potential tenant's name on the court records website to check for any eviction records in their past.
• Be thorough and check various name variations, including birth names, nicknames, alternate names, names with or without initials, and names before or after marriage/divorce.
• Try to get access to the eviction record. While you may not be able to view the full record in every state, you can often get a thorough briefing or full access in most states with eviction cases.

Hire A Third-Party Service

If the process seems complicated or you're unsure about your ability to research every potential tenant effectively, consider using a tenant screening service. These services often include eviction checks as part of their tenant screening process. They can perform a comprehensive national eviction search and provide you with credit information, helping you make an informed decision about prospective tenants. This option can save you time and ensure you have a well-informed list of potential renters to choose from.

Impact of Eviction on Credit and Future Housing?

If eviction-related actions appear on your credit report, they can have significant consequences,

Loan Qualification: When applying for loans, such as a mortgage, having collections actions related to evictions on your credit report can raise red flags for lenders. If you've been evicted in the past, it might be challenging to secure a home loan.

Renting Difficulty: Landlords frequently conduct credit checks on potential tenants. While eviction records are not typically included in consumer credit reports, they may be reported to specialized agencies like Experian RentBureau, which collects tenant payment history for tenant screening companies. This means future landlords may see your eviction history, making it more challenging to rent another property.

How to Remove Inaccurate Eviction From  Your Credit Reports?

If you discover inaccurate eviction-related information on your credit reports, it's essential to take action to remove these errors. Start by obtaining your credit reports from Experian, TransUnion, and Equifax. Examine these reports meticulously to identify any inaccuracies or discrepancies related to the eviction.

If you find errors, promptly contact the credit reporting agencies and initiate a dispute, providing supporting evidence like canceled checks to prove payments. If a judge dismisses a civil suit initiated by your landlord, obtain court records as evidence and submit them to the credit agencies using their dispute procedures, which can be found on their websites.

Similarly, if you believe that collections information is incorrect, dispute it with the credit reporting agencies to request its removal from your credit report. Taking these steps can rectify inaccuracies linked to eviction and enhance your creditworthiness.