Does an Eviction Show on a Credit Report?

An eviction is a legal process where a landlord removes a tenant from a rental property, usually due to a lease violation. While housing is the immediate focus, it is important to understand how an eviction can affect an individual’s financial standing, particularly their credit report and credit score. This article explains how eviction-related information may appear on these financial records.

Eviction’s Direct and Indirect Credit Impact

An eviction filing itself does not directly appear on standard consumer credit reports issued by the three major credit bureaus: Experian, Equifax, and TransUnion. There is no specific section on a credit report labeled “Evictions.” Therefore, the act of being evicted does not automatically result in a direct entry on your credit report.

However, the financial consequences that often accompany an eviction can significantly impact one’s credit. It is typically the unpaid debts or court judgments arising from the eviction process that find their way onto credit reports. These financial liabilities, rather than the eviction event itself, are the elements that can negatively affect a consumer’s credit history and score.

How Eviction-Related Information Appears on Credit Reports

Financial obligations from an eviction can appear on credit reports through specific mechanisms. A common way is when unpaid rent or damages are sent to collections. If a tenant owes money for rent, utilities, or property damage, the landlord or property management company may send this balance to a collection agency.

Once a debt is placed with a collection agency, it reports the account to the major credit bureaus. This results in a derogatory mark on the credit report, indicating a defaulted debt. The collection entry includes details like the original creditor’s name and the amount owed.

Civil court judgments, such as those for unpaid rent or damages, previously appeared on credit reports. However, the three major credit bureaus stopped including most civil judgments on consumer credit reports. While these judgments remain public record, they are not directly reported to your credit file by Experian, Equifax, and TransUnion. Any financial debt from such a judgment, if sent to a collection agency, would still be reported as a collection account.

Understanding the Credit Score Consequences and Reporting Timeframes

Negative items, such as collection accounts, on a credit report can significantly impact an individual’s credit score. Payment history is a significant factor in credit scoring models, often accounting for a large portion of the score calculation. A collection account signals a failure to pay a debt, leading to a considerable reduction in credit scores.

These negative marks, including collection accounts, remain on a credit report for a specific duration. A collection account stays on a credit report for seven years from the date of the first missed payment that led to the collection status. While a paid collection account may lessen its negative effect, it remains on the report for the full seven-year period. This long-term presence highlights the lasting implications of unpaid eviction-related debts.

Steps to Monitor Your Credit Report

Regularly monitoring credit reports is important due to the potential for eviction-related financial information to appear. Consumers are entitled to a free copy of their credit report from each of the three major credit bureaus—Experian, Equifax, and TransUnion—once every 12 months. Access these reports through AnnualCreditReport.com.

When reviewing credit reports, check for any collection accounts linked to a former landlord or property management company. Although civil judgments are no longer included by the major bureaus, individuals should still be aware of their public record status. Regularly examining credit reports helps ensure information accuracy and allows for timely action if discrepancies are found.