Does an Eviction Affect Your Credit Score?

An eviction is a legal process initiated by a landlord to remove a tenant from a rental property, often due to non-payment of rent or violation of lease terms. While the eviction itself does not directly appear on a credit report, the financial obligations associated with it can significantly impact one’s credit score.

The Link Between Eviction and Credit Reports

The primary way eviction-related financial information reaches credit bureaus is through unpaid debts, such as past-due rent or damages, sent to collection agencies. If these amounts are not settled directly with the landlord, the debt may be sold to a third-party collection agency, usually after 90 to 120 days of non-payment. These collection accounts are then reported to the three major credit bureaus: Equifax, Experian, and TransUnion.

Historically, civil judgments for unpaid rent were often included in the public records section of credit reports. However, since 2018, the major credit bureaus generally no longer include civil judgments from public records on consumer credit reports. Despite this shift, these judgments remain part of public records and can still be accessed by prospective landlords or other entities through specialized tenant screening services. Some property management companies may also directly report unpaid debts to credit bureaus or tenant screening databases.

Details of Eviction-Related Entries on Credit Reports

When eviction-related financial obligations appear on a credit report, they primarily manifest as collection accounts. These entries provide specific details, including the name of the original creditor, such as the former landlord or property management company, and the name of the collection agency that acquired the debt. The entry will also display an account number, the original amount owed, the current balance, and the payment status. Such an entry indicates a failure to fulfill a financial obligation, signaling elevated risk to potential lenders.

While civil judgments are generally no longer displayed on standard consumer credit reports, they remain accessible through public court records. This means other background checks can still reveal this legal action, impacting future housing applications. Any public record section on a current credit report would primarily feature bankruptcies, which continue to be reported.

Impact on Credit Scores

The presence of collection accounts on a credit report can significantly harm an individual’s credit score. Credit scoring models, such as FICO and VantageScore, consider payment history a primary factor, often accounting for approximately 35% of the overall score. A collection account indicates a serious delinquency, leading to a substantial drop in credit scores because it represents a debt that was not paid as agreed. Even a single collection can reduce a score by 50 to 100 points, depending on the individual’s initial credit standing.

Several factors influence the severity of this negative impact. The amount of unpaid debt plays a role, with larger outstanding balances generally causing greater score reductions. The recency of the collection account also matters significantly; newer entries typically have a more pronounced effect than older ones, as they are considered more indicative of current financial behavior. Furthermore, an individual’s overall credit profile can affect the degree of impact, as someone with an otherwise strong credit history might experience a more noticeable decline than someone with an already poor score. Multiple negative marks, such as several collection accounts, will compound the adverse effect, making credit recovery more challenging.

Negative entries like collection accounts can remain on a credit report for up to seven years from the date of the original delinquency, as regulated by the Fair Credit Reporting Act (FCRA). Even if the debt is paid, the collection record may stay on the report for this duration, though some newer scoring models might treat paid collections more favorably. This prolonged presence can limit access to new credit, favorable interest rates, and future housing or employment opportunities.

Accessing and Reviewing Your Credit Report

To identify any eviction-related entries, individuals should regularly obtain and review their credit reports. Federal law grants access to a free credit report once every 12 months from each of the three major credit bureaus: Equifax, Experian, and TransUnion. These reports can be accessed through AnnualCreditReport.com or by phone. Consumers can currently access these reports weekly for free, providing more frequent oversight.

When reviewing a credit report, look for the “Collection Accounts” section for any entries from former landlords, property management companies, or third-party collection agencies. While civil judgments are generally no longer listed, reviewing the “Public Records” section can confirm if any bankruptcies or other public record items are present. Checking all three reports is advisable, as not all creditors report to every bureau, leading to potential variations in the information available across reports.

Correcting Inaccurate Eviction Information on Credit Reports

If an individual discovers inaccurate eviction-related information on their credit report, they have the right to dispute it with the credit bureaus. Disputes can be initiated online through the bureaus’ websites, by mail, or over the phone with Equifax, Experian, and TransUnion. When filing a dispute, clearly identify the specific entry, explain why it is inaccurate, and provide any supporting documentation. This documentation might include payment receipts, court orders, or other official records that prove the information is incorrect.

Upon receiving a dispute, the credit bureau is required by the Fair Credit Reporting Act (FCRA) to investigate the claim within 30 days. The bureau will contact the information furnisher, such as the collection agency, to verify the accuracy of the disputed item. If the information is found to be inaccurate, incomplete, or unverifiable, the credit bureau must remove or correct it from the report, which can improve a credit score.