If you are facing eviction, you probably have a lot of questions. One of the most common questions consumers ask themselves during the eviction process is how their credit report will be impacted by an eviction.
Is your eviction reported to the credit bureaus?
Evictions themselves do not go directly on your credit report, but your credit report may be impacted in two different ways as the result of an eviction, regardless of if you won or lost a court hearing.
First, if you are past-due on payments, your landlord has the right to send your debts and contact information to an independent collection agency. While there are no legal outlines that say when your credit will be impacted, a delinquency or unpaid debt will be recorded on your credit report. A negative entry can remain on a person’s credit for seven years.
The other way an eviction could pop up on your credit report is through public records, which the credit bureaus use for their credit reports. If your eviction results in a civil judgment against you, the unpaid rent and court fees could be added onto your credit report.
However, note that the eviction will appear as a “Civil Judgement” on your credit report in this case. Never will a credit report say “Eviction” on it, even if your landlord took you to court and they have won.
Can I rent an apartment after an eviction?
Having an eviction in the form of a civil judgment or unpaid debt on your credit report will certainly limit your housing prospects. Almost all landlords will perform a credit check on a prospective tenant.
Even if the landlord or property management company cant tell that the debt on your credit report is “rent-related”, they will still question your ability to pay rent. Although some landlords may not run a credit check, they will contract a tenant screening company when considering applicants.
Not only will your future housing prospects be extremely limited with an eviction on your credit report, but also your chances of finding an auto loan, personal loan, or even a mortgage. It is best to avoid eviction at all costs and the detrimental impact it can have on your credit report.
If you are facing an eviction, you probably have a lot of questions that need answers. If you are buried under a mountain of debt and ready for a fresh start, CrediReady can help.
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