No one plans to fall behind on their rent, but sometimes life happens. Whether due to loss of income or a surprise expense, what matters most is making a recovery plan and stabilizing your finances. That includes ensuring your credit health is as strong as it can be.
A common concern is whether evictions show up on your credit report. Here’s what to know so you can move forward with confidence.
Do evictions show up on your credit report?
The short answer is no. An eviction is the legal process that allows a landlord to remove a tenant from their property. The goal is to terminate the rental agreement, which your landlord may want to do if you’ve stopped paying your rent, damaged the property, or violated your lease.
Your credit report is a summary of your debts. Reports from the three major credit bureaus — Experian, Equifax, and TransUnion — include:
- Open accounts and how long you’ve had them
- Your most recently reported balances
- Your payment history and account status
- Closed accounts
- Recent credit inquiries
Negative information can also find its way onto your credit report. That includes bankruptcies, late payments, collection accounts and defaulted loans.
Read more >> How to read a credit report
How an eviction can indirectly affect your credit
Since negative activity can appear on your credit report, an eviction could indirectly impact your credit. Here’s how.
Unpaid rent sent to collections
If you get evicted due to unpaid rent, your landlord might send the delinquent debt to a collection agency. If so, a new collection account may appear on your credit report, which can have a negative effect on your credit. Paying off the amount in collections may help build your score, but not always. It depends on your overall credit profile.
Civil judgments and court records
Tax liens and civil judgments no longer appear on credit reports, but they could affect your credit in other ways. For example, if you apply for a mortgage or a new car, the lender will likely search public records during the loan underwriting process, which may cause them to deny your application.
Broken lease fees and unpaid balances
Unpaid rent isn’t the only thing that can go to collections. You might leave your rental home owing additional money for:
- Property damage
- Unpaid utility bills
- Broken lease fees
If these unpaid balances go to collections, you can expect a negative impact on your credit.
How long eviction-related items stay on your credit report
Negative credit information can stay on your credit report for up to seven or 10 years, depending on the specifics.
| Negative credit entry | How long it stays on your credit report |
|---|---|
| Collection accounts | Up to 7 years from the original date of delinquency |
| Late payments | Up to seven years from the original date of delinquency |
| Bankruptcies | Typically up to 10 years |
Note that bankruptcy is a complex legal process. Consult a licensed attorney or nonprofit credit counselor before proceeding. The National Foundation for Credit Counseling (NFCC) offers free or low-cost counseling at 1-800-388-2227.
Read more >> How to build credit after a bankruptcy
How to check if an eviction is affecting your credit
Start by checking your credit reports with all three bureaus, which you can do for free each week at AnnualCreditReport.com. Another way to see all your debts in one place is to create an account with each credit bureau and request free credit reports individually. Once you have your reports, check for any eviction-related collection accounts that could be hurting your credit score.
This is also a good time to review your credit reports for errors. For example, an incorrect balance or account status could hurt your credit. The good news is that you can dispute inaccurate information on your credit report.
Read more >> What to look for in your credit report
How to address eviction-related items on your credit report
There are three main ways to potentially remove negative items from your credit profile.
Dispute inaccurate information
If you believe the information is there in error, your best bet is to file a dispute with each of the credit bureaus. Organize any documents you may have to support your claim. That can include bank statements showing that you paid your rent on time or emails from your landlord.
Once you’re ready, you can submit your dispute online, over the phone, or through the mail. If you’re successful, the negative information you disputed should be removed from your credit report.
Kikoff’s debt negotiation tool contacts the collector for you and brings back an offer. You decide whether to take it.
Negotiate a pay-for-delete agreement
If the account is indeed yours, you may be able to negotiate with the debt collector — sometimes for less than you owe. But pay-for-delete agreements aren’t guaranteed: In most cases, only the original creditor can authorize a deletion, and both creditors and collectors are obligated under the Fair Credit Reporting Act to report accurate information to the credit bureaus.
Consider speaking with a financial advisor or other professional for guidance specific to your situation. If you do take this route, get the agreement in writing.
Wait for the item to age off
If all else fails, you can always wait for the item to fall off your credit report on its own. Again, collection accounts will remain for seven years from the original date of delinquency.
Read more >> How to remove derogatory marks on your credit report
How evictions show up on tenant screening reports
When submitting a new rental application, the landlord might run your information through a tenant screening tool. A tenant screening report may show your:
- Previous addresses
- Rental payment history
- Previous evictions
What’s included in the report depends on information from previous landlords and any relevant court records. Negative entries on your tenant screening report can make it harder to get approved, or a landlord may approve you but require a cosigner or larger security deposit.
Either way, it counts as an “adverse action” under federal law, which means the landlord has to tell you which screening company they used for reporting. Knowing this information helps you request your own copy and dispute any errors or inaccuracies.
How to build your credit after an eviction
Getting evicted can be financially and emotionally stressful, but it doesn’t have to define your credit health. Here are some ways to build your credit as you move forward.
| Why it matters | How to make it easier | |
|---|---|---|
| Make on-time payments | Your payment history makes up 35% of your FICO Score | Set up automatic payments and build your emergency fund to help with unexpected costs. |
| Reduce your revolving debt | Your total amount owed accounts for 30% of your FICO Score | Choose a debt repayment strategy and stick with it. |
| Dispute credit report errors | Incorrect information on your credit report could be hurting your score | Check your credit report for errors at least once a year (or sooner if you’re the victim of fraud or identity theft) |
| Don’t close old accounts | Length of credit history makes up 15% of your FICO Score | Keep old credit cards open, even if you don’t use them much. You may need to make occasional small purchases to keep them active. |
| Avoid opening new accounts | New credit applications trigger a hard credit inquiry, which can temporarily reduce your credit score | Only apply for credit on an as-needed basis. |
Bottom line
An eviction will not appear on your credit report, but it could still indirectly affect your credit. Scanning your credit report for eviction-related information, like new collection accounts, is a good first step. From there, you can make a recovery plan.
The strongest thing you can put in front of your next landlord is a record of on-time payments. Kikoff's Credit Account reports yours to all three credit bureaus — no credit check to start.
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Disclaimer: The information provided in this blog post is meant for informational purposes only and does not constitute financial advice.
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