Will an eviction hurt my credit?

No one plans on being evicted, but when it happens, one may wonder what will happen with their credit history.

Getting evicted can hurt your credit, and potentially make it harder to obtain new credit or even be approved for a new lease in the future. However, there are steps the landlord must take first.

Does the eviction show up on my credit report?

No.

An eviction itself does not show up on the credit report. However, a landlord may use a tenant screening company, which uses rental history and eviction scans from other sources to see if you have been evicted from an apartment or residence in the past. Traditional credit reporting bureaus, such as TransUnion, Experian, and Equifax do not report evictions on credit reports.

What issues may show up?

There are two items that could show up on your credit report because of being evicted. These include:

1. The Collections from the Eviction: If you are evicted for non-payment of rent, you are still legally liable for the amount of rent unpaid. Therefore, the landlord may send your amount due to collections. The collection agency in return will report the unpaid debt on your credit report.

2. Judgements from Suits: If the landlord or collection agency decides to file a suit against you for any unpaid dues posteviction, the judgment will show up on your credit report as a public record filing. Judgments are the worst to have on a credit report, because they tend to do more damage to your credit history and score than collection accounts.

Can I remove the eviction from my credit report?

If you have a judgment or lien filed against you by the courts, public records are not removed from the credit history. Instead, they stay on your credit report for up to seven years from the filing date. For those seven years, you may find it harder to increase your credit score or even be approved for a new loan.

Collection accounts are also listed on your credit history, but you may be able to dispute them if the amount due is incorrect. However, you must show evidence that the amount is incorrect and prove what the proper amount is before the credit reporting agency will adjust the amounts. If you have paid a collection and it does not show such on your report, you will also need to dispute by showing evidence you paid for the collection account.

While you may be unable to remove these derogatory items yourself, a professional could help. Professionals are able to assist you with removing negative items on your credit report, and they could help you improve your credit score in the process.

Talk to the landlord

If you are being evicted or you have already been evicted, the best thing you can do to avoid having a collection or judgment on your credit history is to speak to your landlord and see what options you have available to you. Your landlord may be willing to work out a payment arrangement so that they do not have to file a collection or sue.

Avoid an eviction at all costs

When you cannot afford to pay rent, you still have options. First, speak with your landlord and see what options you have available to you. Your lease may allow you to find a subletter or someone to take over your lease so that you can avoid leaving early, but still avoid paying a rental amount you cannot afford.

Bottom line, the more you communicate with your landlord, the better the chances are that you won’t be evicted or permanently tarnish your credit history and score.