What you will discover:
Will an eviction notice appear on my credit report?
Will a court-ordered eviction judgment appear on my credit report?
How much harm can an eviction have on my credit?
Can an eviction affect my credit if I leave before the case goes to court?
Keep your credit and reputation as a renter safe.
Finding a new home to live is not your only issue if you have been evicted. An eviction might harm your credit score, at least indirectly. Much of the impact on your credit will be determined by the length of the process and, if it is related to unpaid rent, whether your landlord takes the case to collections. Every case is unique, but the information below will help you understand what to anticipate.
Table of Contents
Will an eviction notice appear on my credit report?
Evictions are not recorded on your credit report. A notice of eviction is a notification by your landlord that they plan to evict you unless you take remedial action.
The most typical kind of eviction notice is a notice to pay or leave, which is issued when a tenant fails to make a rent payment. It informs the renter that if they do not pay within a specific number of days, the landlord will seek a court order. The eviction procedure is terminated if you pay your debts or move out willingly.
In certain cases, the eviction notice may not provide you the chance to resolve the issue. For instance, if you do damage to the property, the landlord may want you to leave as quickly as possible. This may still not reflect on your credit record since it is simply the beginning of the legal procedure.
Will a court-ordered eviction judgment appear on my credit report?
If you lose in court after receiving an eviction notice, a judge will file an eviction judgment on your landlord’s behalf. This is the formal court order allowing the landlord to evict you from the property if you do not depart by a specific date.
Although the eviction judgment is legally binding, it does not appear on your credit report. Your credit report only shows financial debt and whether or not it has been repaid. The eviction serves to terminate the lease and allow the landlord to reclaim ownership of their property.
Even if an eviction decision does not show on your credit report, it is still public information. When you seek for housing, potential landlords may notice the eviction since most tenant background checks scan public records for evictions.
How much harm can an eviction have on my credit?
While an eviction does not directly affect your credit score, many evictions involve landlord debt. This might be unpaid rent or property damage. Unlike other types of debt, your landlord is unlikely to record your rent history or late payments to a credit agency.
When your landlord sends outstanding obligations to collections, it may have an effect on your credit score. Depending on where you began, a collections account might possibly lower your credit score by hundreds of points. The effect fades with time, and many modern scoring models disregard the collections account after it has been paid in full.
A civil judgment for rent, other expenses, or court fees may also be entered by the court. Court decisions will no longer be included on your credit record. As a result, the court verdict may not affect your credit score. Only if the landlord sends the bill to collectors would you notice a reduction in your credit score.
Can an eviction affect my credit if I leave before the case goes to court?
Again, the eviction has no effect on your credit. Furthermore, if the court has not issued a judgment, you have not been evicted. You have not been evicted if you agree to leave. You may still owe money to your landlord, which might be collected.
The COVID-19 eviction moratoriums provide another possibility. If you fall behind on your rent, your landlord may petition for eviction. However, depending on the COVID-19 tenant protections in your area, a landlord who cannot legally seek an eviction can still send a debt to collections. Even if you continue to reside in the same apartment, this might lower your credit score.
The best thing to do if you are facing eviction is to speak with your landlord, since most landlords like to avoid the eviction procedure. You may be eligible to sign into a Late Rent Payment Agreement, which will allow you to avoid both eviction and collecting.
Keep your credit and reputation as a renter safe.
Finding a new place to live is just one of the challenges of facing eviction. While an eviction may not directly affect your credit, it may cause problems in the future. Consult a lawyer to learn more about your legal rights, how to contact your landlord, or how to react to an eviction.
