Does Getting Evicted Affect Your Credit?

An eviction is a legal process initiated by a landlord to remove a tenant from a rented property, typically due to a lease violation like non-payment of rent. Understanding how an eviction can be reflected on an individual’s financial history is important, as it may impact future housing and credit opportunities.

How Eviction Records Appear on Credit Reports

Eviction proceedings are formal legal actions that take place in court, becoming part of the public record. When a landlord files an eviction lawsuit, known as an unlawful detainer action, the filing becomes publicly accessible. If the court rules in favor of the landlord, a judgment is issued, also a public record. This judgment formally declares that the tenant must vacate the property and may include a monetary award for unpaid rent or damages.

Credit bureaus and tenant screening companies regularly access public records. While an eviction filing or judgment might not directly appear on a standard credit report, it is often accessible through specialized tenant screening reports used by landlords. These reports compile information from various sources, including court records, to provide a comprehensive rental history. A landlord screening a prospective tenant may discover a past eviction through these reports.

Public records, such as civil judgments related to evictions, can remain visible for approximately seven years. This means that even if a direct “eviction” notation isn’t on a primary credit report, the underlying court action can still be found by those who perform thorough background checks for housing applications. The presence of such a record indicates a formal legal dispute over a tenancy, which can be a significant factor in future rental decisions.

Unpaid Rent and Collections

Separate from the court record of an eviction, the financial obligations associated with it, such as unpaid rent, late fees, or property damages, are debts. Landlords typically attempt to recover these outstanding amounts directly from the tenant. If these efforts are unsuccessful, the landlord may choose to sell the debt to a third-party collection agency.

Once a debt is placed with a collection agency, that agency can report the delinquent account to the major credit bureaus. These collection accounts appear on an individual’s credit report as distinct negative entries. Landlords may also directly report severe delinquencies to credit bureaus, especially if they use rent reporting services or are a larger property management company.

These collection accounts can significantly lower an individual’s credit score. They indicate a failure to repay a financial obligation, a key factor in creditworthiness assessments. Such negative marks, including judgments for unpaid rent, can remain on a credit report for up to seven years from the date of the original delinquency.

Understanding Your Credit Report and Score

After an eviction or related financial dispute, it is important to review your credit report to understand how it has been affected. Individuals are entitled to a free copy of their credit report from each of the three major credit bureaus (Equifax, Experian, and TransUnion) once every week through AnnualCreditReport.com. When reviewing these reports, look for entries in the public records section, which might list civil judgments, and the collection accounts section, where unpaid rent or related debts could appear.

A credit score is a numerical representation of an individual’s creditworthiness, calculated based on the information in their credit report. Negative marks, such as collection accounts or civil judgments resulting from an eviction, contribute to a lower credit score. These entries signal a higher risk to potential lenders or landlords. The impact of these negative items on a credit score can be substantial, especially when they are recent.

While the specific impact on a credit score may lessen over time as the information ages, its presence can still influence credit decisions throughout this period. It is important to monitor credit reports regularly for accuracy and to understand how past financial events are being reported.