How Does an Eviction Affect My Credit?

Evictions as Unpaid Credit

Getting evicted from your home is a disheartening and stressful situation. Most often, the eviction comes when you are out of time, resources and money. An eviction can lead to a judgment. The judgment can be placed on your credit rating. Rent is considered a type of short term credit, being paid each month. Evictions are a form of repossession of property for nonpayment of credit. Like other types of credit, the inability to pay can cause a judgment against you. The amount listed as owed by you can be listed on a credit file by any of the three credit reporting agencies: Experian, TransUnion and Equifax.

Evictions and Credit History

A collection account which was opened because of past due rent can be a part of your credit file. Collection accounts remain in a credit file for seven years, or longer if renewed at the seven year point. The judgment can be sold and re-sold to different agencies, who can also report a separate credit account as unpaid if you made payments and then stopped or simply refused to pay. These accounts can be hard to remove sometimes. If you pay off the account, the file will report the account as paid but it will still list that there was an initial judgment against you. If an account is paid, it will be removed eventually. A negative report on your file can affect future rental ability, insurance premiums, loans, interest rates, or cause the need of a security deposit for utilities and car rentals.

Evictions and Judgments

An eviction causes the most damage when you are looking for an apartment. Landlords check tenant screening reports which show rental history. Evictions can also weigh in when you are looking to purchase a home as the bank will want to know your payment history with previous landlords. Evictions listed for judgment can also cause trouble when applying for utility service and cause service providers to either place strict payment guidelines or deny service.