Here’s What Happens to Your Credit Score When You Get Evicted

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An eviction could negatively impact your credit score. Read on to see what sort of damage you might be looking at. 

During the pandemic, when unemployment levels skyrocketed, lawmakers took steps to help prevent a widespread eviction crisis. Specifically, they put a moratorium on evictions in place so that landlords could not remove tenants from their homes on the basis of being unable to pay their rent.

But those protections have long since expired, so if you fall behind on your rent today, you could risk having your landlord pursue an eviction. Not only might that wreak havoc on your general well-being, but it could also be hugely problematic from a credit score perspective.

The damage could be extensive

An eviction is a legal process that your landlord needs court approval to pursue. A record of your eviction itself generally will not show up on your credit report, according to Equifax.

However, what might happen is that in conjunction with an eviction, your landlord might turn your unpaid rent over as a debt to a collections agency. And if you don’t make good on that debt, it could end up being listed as delinquent on your credit report.

That’s a problem, because a delinquent debt has the potential to drag your credit score down quite a bit. The extent of the damage will depend on factors that include how high your credit score was to begin with. But you should know that just as a delinquent loan or credit card bill will generally remain on your credit report for seven years, so too could unpaid rent that’s related to an eviction.

What to do if you’re facing eviction

Not paying rent isn’t the only reason a landlord might opt to evict a tenant. You also risk eviction if there’s a rule in your lease that you’re repeatedly violating.

For example, it may be that your lease prohibits animals in the building. If you did a stealth adoption and have been harboring a cat for the past few months, and your landlord has warned you to get rid of your pet but you haven’t, that could be grounds for eviction.

But let’s assume you’re at risk of eviction due to a failure to pay rent. If that’s the case, your best bet is to reach out to your landlord and discuss your situation.

It may be that you’ve lost your job and need time to get back on your feet. If you can provide proof of your job loss, your landlord might agree to let you pause your rent payments until you’re employed again. Or your landlord might agree to a reduced payment while you’re in the middle of a hardship.

It especially pays to talk things through with your landlord if you’ve been a tenant in good standing for quite some time and your negative financial situation is only temporary — for example, you’re in between jobs, but you can generally command a high enough wage to cover your rent in full.

The eviction process can be harrowing for tenants, but it’s not exactly fun for landlords, either. And it can be costly for them. So you may be surprised at how willing your landlord is to work with you if you come clean about your situation rather than simply ignore those past-due rent notices.

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