Credit bureaus no longer can include eviction record entries in consumer credit reports following changes implemented by the Consumer Financial Protection Bureau, an agency associated with the Fair Credit Reporting Act.

However, any remaining rent owed is generally considered unpaid debt that a collection agency will pursue. Collection accounts stemming from the eviction may be reported to credit bureaus and may remain as part of a consumer’s credit record for seven years.

How Does an Eviction Affect Your Credit?

Consumers recognize that a poor credit history hinders their eligibility for financing homes, cars, and other large purchases. People with low credit scores often pay higher insurance rates and may have fewer employment options when credit checks are part of background checks.

Eviction proceedings begin when tenants have unpaid rent payments or otherwise breach lease agreements. An eviction case is typically filed by a landlord or property manager in a housing court seeking an eviction judgment that is forcing the tenant to vacate the premises.

Restrictions prevent consumer credit bureaus from posting entries indicating a tenant was the subject of an eviction lawsuit, was issued an eviction notice, or other activity specifically related to the eviction process.

A collection agency often initiates collection efforts after an eviction hearing results in a civil judgment for recovering the unpaid rent. The collection agency may submit this data, which appears on your credit report and adversely impacts a good credit score for seven years.

The negative collection information will linger on your credit report and harm your credit score, which may prevent you from obtaining a mortgage, car loan, or credit card.

Having a bad rental history may still impede your ability to rent, as prospective landlords today use tenant screening reports.  After receiving a leasing application, the potential landlord’s tenant screening report may reveal eviction reports, criminal records, civil judgments, and more.

Can You Dispute an Eviction?

The eviction laws typically vary according to the individual state’s landlord/tenant laws and provisions. Tenants who believe that they have been unlawfully evicted may review their state’s renter’s rights or seek legal advice from a professional.

For example, a landlord seeking an eviction must follow some specific processes or series of procedures. Eviction-related discussions recently emerged during the nationwide ban (or stay) imposed on eviction proceedings during the COVID-19 pandemic.

As with any information contained within your credit report, consumers are encouraged to review their credit history regularly. The three major credit bureaus, Equifax, Experian, and TransUnion, all offer consumers a free copy of their report annually.

Perhaps collection accounts associated with an eviction were subsequently reported inaccurately? In this instance, you can initiate the dispute process with the credit reporting agency.

In some cases, a prospective tenant may have a lease application denied by a possible future landlord who attributes the denial to a prior eviction. Here, you should contact the tenant screening company regarding their dispute process if the reported eviction is inaccurate. 

How Can I Remove an Eviction From My Public Records?

Public records contain information sourced from government documents, often from courts at the local, state, federal levels, and some community resources. Today, public records are usually accessible online such as from city, county, and other agency websites.

At the federal level, the Electronic Freedom of Information Act (EFOIA) ensures reasonable access to public records electronically.

Traditionally, consumer credit reports contained a designated section for public records. The publicly reported events included bankruptcy, foreclosure, unpaid tax liens, and any civil judgments resulting from a lawsuit.

In 2017, National Consumer Assistance Plan (NCAP) restricted credit reporting bureaus from posting the majority of public record entries in consumer credit reports. Today, bankruptcies are the lone form of derogatory public record that appear on a credit report.

Despite no longer appearing on consumer credit reports, evictions, judgments, and similar negative entries still appear on public records for seven years and usually appear when someone is the subject of a background check or tenant screening report.

The process of removing an eviction from public records may include the following steps: 

Step 1

Gather all pertinent documents regarding the eviction including lease agreements, letters, notices, or other forms of correspondence.

Step 2

Organize all documents for review. Contact a lawyer for determining whether the eviction records may be legally removed.

Step 3

If needed, engage the landlord or property management company for negotiations. For example, if the eviction was the result of nonpayment, determine the amount of rent owed (balance) and any interest that has accrued. 

The goal of any such negotiation is to reach a mutually acceptable agreement that resolves the matter.

Step 4

Have your attorney draft a formal agreement that contains all critical details such as payment amount, information regarding the recipient of the payment, and the stipulations.

Step 5

After both parties sign the agreement, your attorney should file a petition and/or request a hearing based on the procedures of the specific jurisdiction. If appropriate, a judge may “vacate” judgment or default, allowing for the removal of the records.

How Can I Remove an Eviction From My Credit Report?

Remember that consumers may obtain a free copy of their credit report each year from the three major credit agencies.

Entries that specifically refer to the process of eviction should no longer (legally) appear on a consumer credit report. Among the types of adverse public records, only bankruptcy will appear on your credit bureau report.

However, in many evictions, the landlord or property management company will file a lawsuit in a local court for the purpose of obtaining a civil judgment. A judgment is the final phase of the eviction process, which usually results in a collection agency beginning recovery efforts.

Subsequent collection agency activity may be reported to the major credit bureaus and appear as derogatory entries on your credit report for seven years from the original date of delinquency.

If a consumer notices that their credit report contains an entry that specifically cites an eviction, or if the consumer believes that a related entry was reported in error, they may file a dispute. The following steps reflect how to pursue a removal with TransUnion:

Step 1

Credit reporting agencies are obligated to ensure that your credit report accurately reflects your credit history. Each credit report entry should reference the reporting party, which for eviction would include the landlord or property management company or a collections agency.

The first option is to contact the reporting party directly. Here, you would request that they remove any entries that specifically reference the eviction process. 

Step 2

The alternative option involves filing a dispute with the credit reporting agency. All three of these bureaus now have free and simple website tools for submitting disputes on their website.

TransUnion’s process involves quickly establishing an account and selecting the specific report entry(s) that you believe are erroneous.

The application allows for entering a written explanation and any documentation that supports your claim as well. 

Step 3

TransUnion representatives will investigate by reviewing the materials and determining whether the dispute has merit. Most investigation results today are received within approximately 30 days.

How Can I Remove a Civil Judgment From My Credit Report?

A civil judgment may be ordered by a court after a lawsuit, such as an eviction. The judgment affirms that you (the debtor) have liability for the debt and allows the creditor to conduct expanded collection efforts including placing liens on property or garnishing wages.

Experian explains that judgments and liens are no longer posted in consumer credit reports, as bankruptcy is the only public record that may be listed. Other collections activity related to a judgment may appear on your report.

The following steps explain how to remove a judgment from your credit report:

Step 1

If you have an invalid or inaccurate judgment-related credit report entry, you may contact the creditor or collection agency requesting validation. Here, the reporting party must provide details documenting the validity of the debt, or the reported entry must be removed.

This option generally applies for examples such as:

• You have paid the debt associated with the judgment
• The reported collection account involves some other party
• A reporting creditor no longer is in business, meaning the debt cannot be validated

Step 2

In most cases, a credit reporting agency will remove entries that cannot be validated. For other errors, you might need legal assistance regarding the possibility of vacating the judgment through the court where it was filed.

Step 3

If a judgment-related entry on your credit report is proven valid and accurate, you may contact the reporting agency for negotiations. Here, reaching an agreement for settling the debt is the remaining option.

Your attorney must create a formal agreement that will be signed by both parties after paying the balance. Once resolved, your attorney may petition the court for vacating the judgment, which subsequently allows the removal of the adverse entries from your report.

Can I Still Rent With an Eviction on My Credit Report?

Keep in mind that public records such as an eviction no longer appear on your credit bureau reports. However, most subsequent activity by a collection agency in pursuit of the debt may appear for seven years, but the credit report entries will not specifically cite the eviction.

When you apply for a rental lease, many landlords use specialized tenant screening reports that will clearly reveal evictions, judgments, and other similar public records from the past seven years. 

Landlords that conduct tenant background screening will likely deny applicants having an eviction, which makes obtaining a lease more challenging — but not impossible.

Not all landlords and property managers perform tenant screening, some private landlords may simply verify your employment when you apply.

Some landlords or property managers may consider leasing, but will require a more substantial security deposit or some prepayment of rent.

Although recent changes now restrict most public records including evictions from appearing on your credit report, being evicted from your home will likely have bad ramifications.

First, a collection agency may assume responsibility for recovering the debt. Collection activity will show on your credit report and adversely impact your likelihood of qualifying for financing for roughly seven years.

Meanwhile, landlords and property managers now use tenant screening reports when assessing prospective tenants. These reports do reveal evidence of eviction within the past seven years.

Tenants experiencing unexpected financial difficulties that pose challenges in paying the rent must consider mitigating strategies for preventing eviction. For example, promptly notify your landlord or property manager regarding alternative payment arrangements.

Eviction is among many potential pitfalls that may be avoided by developing responsible spending habits and using credit wisely. Smart consumers recognize the importance of establishing a written budget, having money saved for emergencies, and other best practices.   

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