Does an Eviction Notice Affect Your Credit?

An eviction notice is a formal communication from a landlord to a tenant, indicating an intent to terminate a rental agreement and reclaim the property. It typically outlines a reason, such as unpaid rent or a lease violation, and provides a timeframe for the tenant to address the issue or vacate the premises. This document serves as an initial step in the eviction process, laying the groundwork for potential legal action.

The Eviction Notice Itself

An eviction notice, also known as a “Notice to Quit,” is a communication between a landlord and tenant. This document informs the tenant of a lease violation or overdue rent and specifies the required action or deadline to move out. The mere issuance or receipt of this notice does not appear on a consumer’s credit report. It is a precursor to potential legal proceedings, not a financial event reported to credit bureaus.

Credit Reporting of Eviction Outcomes

While an eviction notice itself does not impact a credit report, specific outcomes from the eviction process can significantly affect a consumer’s credit history. Financial obligations or legal judgments resulting from an eviction are the factors that appear on a credit report.

If a landlord obtains a court judgment against a tenant for unpaid rent or property damage, this civil court record can be reported to credit bureaus. Such judgments can significantly lower a credit score. If unpaid rent or other financial obligations are sent to a third-party collection agency, this collection account will likely appear on the credit report. These negative marks, whether court judgments or collection accounts, can remain on a credit report for up to seven years from the original delinquency. The presence of these items can make it more challenging to secure future housing or obtain new credit.

Reviewing Your Credit Report

Regularly review your credit reports to understand how eviction-related financial outcomes can impact your credit. Consumers are entitled to one free credit report annually from each of the three major credit reporting agencies: Equifax, Experian, and TransUnion. These reports can be accessed through AnnualCreditReport.com.

When reviewing your credit report, focus on the public records section for civil judgments and the accounts section for collection accounts from former landlords or debt collectors. Verify the accuracy of all reported information. If you identify any inaccuracies, you have the right to dispute them directly with the credit bureau and the entity that reported the information.