5 Proven Steps to Remove EVICTIONS from Credit Reports

By: Daniel Rosen Last updated: March 28, 2024

Dealing with an eviction can be really scary, especially when it lands on your credit report. And the number of evictions continues to rise each year.

That's why I'm going to explain exactly how evictions impact your credit score and how you can remove them!

Going through an eviction is a very stressful process, even without considering the impact on your credit score.

Have you ever been evicted or threatened with eviction?

I have. It was so terrible and embarrassing. And I didn’t even get evicted because I did anything wrong. I was a great tenant, I paid my rent on time, fixed my own stuff, and left my landlord alone. But my landlord was really mean, and he evicted me so he could raise the rent. It’s terrible, I know!

We went to court, and I thought I had a great case. But he said all this terrible stuff about me that wasn't true. And I lost. Suddenly, I had to move everything and find a new place to live.

Getting evicted sucks! It's a horrible process for everyone involved, and it leaves the evicted person in the very difficult position of trying to find new housing with an eviction mark on their record.

HERE'S HOW THIS RELATES TO US
Evictions have been a problem for a really long time. Even before the pandemic, things were bad, with about 7.6 million people being evicted each year from 2007 to 2016.

But now, things are even WORSE. Eviction rates are more than 50 percent higher than the pre-pandemic average in lots of cities.

And if you have a kid, your chance of being evicted is even higher, which is really scary for a lot of families out there!

The eviction rate for people living with a child is over 10 percent, more than double the risk for those without kids.

Additionally, ever-increasing costs of things like groceries and child care, plus reduced working hours or discrimination from landlords, all contribute to this.

And everyone is impacted by the skyrocketing rents, affordable housing shortage, and high inflation rates, which make evictions even more of a threat!

HERE'S THE THING TO REMEMBER

Evictions can be tricky when it comes to credit repair, but understanding how they impact your credit and how to bounce back from them is key!

Now, I say tricky because evictions usually won't show up on credit reports at all…but they typically stay on public records for up to seven years.

So, even though evictions might not show up on your credit report directly, the stuff that happens because of an eviction can still give your credit a bit of a hit.

HERE'S WHY THIS IS IMPORTANT
There are a lot of reasons why someone can get evicted. Everything from the tenant breaking the lease agreement to the owner wanting to use the property personally, which is how I got evicted.

While most evictions can make it harder to find another place to live, they shouldn't impact your credit score.

But if someone is evicted because they didn't pay their rent and they have a collection account open, their credit reports will have a derogatory mark for that collection, and that can stay on their credit reports for up to 7 years. That collection account will negatively impact your credit score.

Beyond credit reports, if a legal case is brought up to evict a tenant, that case file can be accessed indefinitely through court records.

While evictions might not hit credit reports head-on, they still leave a mark on your credit. They can drag down your credit score, hike up your interest rates, and stain your public record, making finding rental housing very difficult in the future.

HERE’S WHAT YOU NEED TO KNOW
Even though it’s not always possible, the best thing you can do is try to avoid an eviction altogether. With that being said…

If you’ve been evicted for something besides non-payment of rent, your credit won’t be affected. Just be sure to explain the situation to your next landlord and expect to pay slightly higher rent.

If you’re being evicted for non-payment of rent and are still in the process, you want to try to do everything in your power to fix the problem before going to court.

I wish I had known that when I was evicted because that’s on my record forever.

Seriously, settle, pay back the rent, work with the landlord to come to a solution. Anything that doesn’t involve the courts.

Wrongful evictions do happen and you should consider pursuing legal action in court if that happens. The CFPB outlines a whole list of Renter Protection Resources on its website.

Now, if you or your client has been evicted because of non-payment of rent and that debt went to collections, here are FIVE steps to follow to remove that from your credit report…

1. Attempt to repay or settle the debt. Negotiate with the property manager, landlord, or collection agency, and determine a sum or payment plan.

2. Work out ahead of time in writing, that once the debt is settled or paid off, that the collections accounts will be removed from the credit reports.

3. Ask to have the eviction records removed from the Tenant-Screening reports as a condition of repayment.
4. Verify that the items related to the eviction have indeed been removed from the credit report and Tenant-Screening report.

5. Dispute any inaccuracies related to the eviction with the Credit Bureaus and Tenant-Screening Agencies.

If handled correctly, evictions can be avoided, but when circumstances cause them to be unavoidable, you can still ensure that the impact is minimal instead of devastating.

HERE’S MY FINAL POINT…
Evictions are a really stressful thing that happens to so MANY people. They can be unfair and make it hard to find your next home.

As eviction rates continue to rise, we have to be prepared to help a lot of people.

I'LL END BY SAYING

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