Does an Eviction Go on Your Credit Report?

An eviction can be a concern for individuals navigating their housing and financial well-being. It raises questions about its lasting effects on financial standing and future housing. While the direct eviction record may not appear on a standard credit report, related financial consequences can certainly impact credit scores.

How Eviction Information Appears on Financial Records

An eviction action, the legal process a landlord undertakes to regain property, does not typically appear as a direct tradeline on a standard credit report. Unlike other accounts, eviction filings are not directly reported to the three major credit bureaus (Equifax, Experian, TransUnion). However, the financial fallout from an eviction can impact financial records indirectly.

One common indirect impact is through court judgments. If an eviction case results in a court order for unpaid rent or damages, this civil judgment becomes a public record. Credit bureaus access public records, and such judgments may appear in the public records section of a credit report, negatively influencing a credit profile.

Another way eviction-related debt appears is if unpaid rent or damages are sent to a collection agency by the landlord. This collection account will be reported to the credit bureaus and appear on a credit report, which is detrimental to a credit score.

Specialized tenant screening companies also play a role in how eviction information is disseminated. These companies compile databases that include eviction filings, court judgments, and other landlord-tenant court records. Landlords frequently use these reports for background checks, providing a comprehensive view beyond a standard credit report. Some landlords may directly report unpaid rent or lease violations to credit bureaus, especially if they use third-party rent reporting services. These services can report both positive and negative rental payment history, affecting credit reports.

Credit Score Impact

The indirect ways eviction-related information appears on financial records can negatively affect a credit score. When a court judgment for eviction or unpaid rent is reported, it can significantly lower a credit score because public records indicate financial instability. This derogatory mark impacts payment history, which accounts for a large portion of credit scoring models.

Collection accounts for unpaid rent are damaging to a credit score. These accounts indicate a failure to pay a financial obligation, directly impacting payment history and the amount of debt owed, both major factors in credit scoring. Even a single collection account can cause a notable drop.

Most negative marks related to an eviction, such as judgments and collection accounts, remain on a credit report for up to seven years from the date of filing or original delinquency. The severity of the impact can vary depending on the credit scoring model used, the original amount of the financial obligation, and the individual’s overall credit profile. Newer scoring models might treat certain collection accounts less harshly, but most creditors still use models where unpaid collections carry weight.

Accessing and Understanding Your Rental History

Understanding your financial and rental history is important, especially after an eviction or when applying for new housing. Individuals can obtain a free copy of their credit report once every 12 months from each of the three major nationwide credit bureaus: Equifax, Experian, and TransUnion. These reports can be requested through the official website AnnualCreditReport.com. When reviewing these reports, look for public records, such as civil judgments related to eviction, and any collection accounts for unpaid rent or damages.

Beyond standard credit reports, individuals also have rights regarding specialized tenant screening reports under the Fair Credit Reporting Act (FCRA). If a rental application is denied based on information in a tenant screening report, the landlord is required to provide the name and contact information of the company that supplied the report. This notification also informs the applicant of their right to request a free copy of that report within 60 days. Requesting this report allows individuals to review their rental history, including any eviction filings or related court records.

If any information found on a credit report or tenant screening report appears inaccurate or outdated, individuals have the right to dispute it. The dispute process involves contacting the credit bureau or tenant screening company that issued the report, explaining the inaccurate information, and providing any supporting documentation to prove the error. The reporting agency is required to investigate the dispute within 30 days. Correcting factual errors on these reports can help improve one’s financial standing and future housing prospects.