How Evictions Impact Your Credit Report
The association between rental history and credit is not as straightforward as some might think.
Your rent history can positively impact your credit report, but it is not automatic.
Private landlords, rental agencies, and property management groups are not considered creditors, so many are not equipped to send monthly updates about your payment history to the credit agencies.
Therefore, if you want your rent history shared, you will have to ask or confirm that your apartments’ front office or landlord has this capability.
Here’s why this is important.
Whether you are trying to establish a credit file or beef up your credit report, any positive payment history helps you move the needle toward a higher credit score and favorable financial transactions. So it is worth the hassle.
Here’s why you might want to skip it.
Just like some of these businesses are not reporting positive rental history, they are also not communicating negative rental outcomes, like missed payments, evictions, and contested leases. Evaluate the risk/reward before adding rental history to the credit file.
However, if the landlord or property management group has filed an eviction against you and it is recorded on your rental history report, which is different from your main credit report, contact the county where it was filed. There may be processes in place to have it removed or contested.
If it shows up as a collection account because the eviction has been sold to a collection agency, the other scenario is to wait it out if you cannot make amends. After seven years from the first delinquency, the eviction will fall off your credit report.
If you can work it out, contact the Collect Agency and set up a payment plan. Then request that your credit file is updated.
Moral of the story. Be intentional about your payment history and credit report. It can cost you time and money in the long run. If things get out of whack, just contact the property owner or the county where you live to get assistance. It happens! Make your next move a positive one.
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