Does an Eviction Affect Your Credit Score?

An eviction represents a landlord’s legal process to remove a tenant from a rental property, typically due to a breach of the lease agreement. This action most commonly stems from missed rent payments, although it can also arise from property damage or lease violations. While the eviction itself may not directly appear on a consumer’s credit report, the financial consequences and associated legal proceedings can significantly affect one’s credit standing. Understanding these indirect impacts is important for anyone navigating such a challenging situation.

How Evictions Affect Credit Reports

An eviction action is generally not reported directly to the major credit bureaus, such as Experian, Equifax, and TransUnion. These bureaus primarily track financial accounts like loans and credit cards, not specific housing court actions.

One primary way an eviction impacts credit is through unpaid rent or damages being sent to collection agencies. If a tenant owes money to a landlord for past-due rent, late fees, or property damage following an eviction, the landlord may sell this debt to a third-party collection agency. Once a collection agency acquires the debt, they typically report it to the credit bureaus, creating a negative entry on the consumer’s credit file. This collection account then signals to potential future creditors that the individual defaulted on a financial obligation.

Another significant indirect consequence involves court judgments. When a landlord files an eviction lawsuit and the court rules in their favor, a civil judgment may be entered against the tenant for the unpaid rent or damages. While civil judgments were historically reported on credit reports, the three major credit bureaus stopped including most civil judgments on consumer credit reports in 2017. Despite this change, these judgments remain public records, meaning they can still be accessed by lenders, landlords, or employers through public records databases, indirectly influencing financial opportunities.

Beyond standard credit reports, specialized tenant screening reports are widely used by future landlords. These reports often pull information from eviction court records, regardless of whether the eviction resulted in unpaid debt or a judgment. Even if a consumer’s traditional credit report remains clear of direct eviction marks, a landlord’s check of these specialized tenant databases will likely reveal the eviction history, making it more challenging to secure new housing.

Impact on Credit Scores and Reporting Duration

When unpaid rent or damages from an eviction proceed to collections, the impact on credit scores can be substantial. Collection accounts are considered serious negative marks and can cause a significant drop in credit scores, potentially by hundreds of points. The severity of this impact depends on several factors, including the amount of the debt, the number of collection accounts, and the overall credit profile of the individual. Newer credit scoring models may treat paid collection accounts or smaller collection amounts less harshly, but older and still widely used models continue to penalize them.

Collection accounts, regardless of whether they are paid or remain unpaid, typically stay on a consumer’s credit report for seven years from the date of the original delinquency that led to the collection. This means that even if the debt is settled or paid in full, the negative entry will generally remain visible on the credit report for the remainder of this seven-year period. While the negative effect on credit scores may lessen over time, especially for older or paid collections, the presence of such a mark can still hinder access to credit and favorable terms for the full duration.

Civil judgments no longer appear directly on credit reports since 2017. However, the underlying financial behaviors that led to the judgment would have already negatively impacted the credit score. While the judgment itself does not have a direct reporting duration on the credit report, the associated delinquencies and collection accounts that often precede or result from it will follow the standard seven-year reporting period from their original delinquency date. This public record status of a judgment can still be discovered through background checks, impacting future housing or employment opportunities.

Addressing Eviction-Related Credit Issues

A proactive step in addressing eviction-related credit issues involves obtaining copies of your credit reports. Consumers are entitled to a free copy of their credit report from each of the three major credit bureaus—Experian, TransUnion, and Equifax—once every 12 months through AnnualCreditReport.com. Reviewing these reports allows individuals to identify any collection accounts or other negative entries linked to the eviction and verify their accuracy. It is also possible to access free weekly credit reports from each bureau through this same website for ongoing monitoring.

If any information on a credit report appears inaccurate or incomplete, individuals have the right to dispute it directly with the credit bureaus and the entity that reported the information. This dispute process typically involves submitting a written explanation of the error, along with supporting documents, to each credit bureau that lists the incorrect item. The credit bureau then has a certain period to investigate the claim, usually 30 to 45 days, and must correct or remove any information found to be inaccurate.

Paying off collection accounts stemming from an eviction can be a beneficial step, even though the negative mark typically remains on the credit report for the full seven-year reporting period. When a collection account is paid, its status on the credit report changes from “unpaid” to “paid,” which is viewed more favorably by lenders and some newer credit scoring models. While the concept of “pay for delete”—where a collection agency agrees to remove the entry entirely in exchange for payment—exists, it is rare and not guaranteed, as it can conflict with accurate reporting requirements.

Beyond addressing specific negative entries, rebuilding credit after an eviction requires consistent positive financial habits. This includes making all other payments on time, as payment history is a significant factor in credit scoring. Keeping credit utilization low, meaning using a small portion of available credit, also contributes positively to scores. Utilizing secured credit cards, which require a cash deposit as collateral, can be an effective way to build or rebuild credit by demonstrating responsible use and on-time payments to credit bureaus. Similarly, credit-builder loans, where payments are made into a savings account before the funds are released, can help establish a positive payment history.

For complex situations or when significant debt is involved, seeking professional assistance can be advisable. Credit counseling agencies can provide guidance on budgeting, debt management plans, and strategies for improving credit. For legal advice regarding civil judgments, debt collection practices, or disputing complex inaccuracies, consulting a consumer law attorney can offer tailored support and protect one’s rights.