Eviction & Credit Report

How long does a eviction stay on your credit report?

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Bill's Answer: Bills.com Resident Expert

Not all landlords report their experiences with tenants to Experian, Equifax, or TransUnion. In fact, none of my landlords appear on my credit reports and I have rented properties in Texas, Ohio, New Hampshire, and California. However, I am not suggesting that no landlords report their tenants to the big-three consumer credit reporting agencies -- but not all do.

Because you ask, "How long does a eviction stay on your credit report?" this answer assumes the eviction already appears on your credit report. The eviction will appear as a collection account, which is in other words a debt.

Federal law (US Code Title 15, §1681c) controls the behavior of credit reporting agencies. This law is known as the Fair Credit Reporting Act (FCRA). Under FCRA §605 (a) and (b), an account in collection will appear on a consumer's credit report for 7.5 years. The clock starts approximately 180 days after the date of first delinquency on the account. To learn when an account will be removed by the credit reporting agencies (TransUnion, Equifax, and Experian and others), add 7.5 years to the date of first delinquency. Subsequent activity, such as resolving the debt, is irrelevant to the seven-year rule. However, if the debt is a tax lien, that can appear for seven years from the date of payment. A bankruptcy will appear for ten years from the date of the final order. Delinquent federal student loans can be reported indefinitely, i.e., for as long as they are delinquent.

Landlords can do more than look to the big-three consumer credit reporting agencies to determine whether to rent to a prospective tenant. One or more companies in the US comb through public court records searching for eviction notices. If a landlord uses legal means to evict a tenant, this eviction will appear in a public record, which in turn winds up in a database. Landlords can get a credit-report-like document on a prospective tenant's previous eviction orders.

Therefore, an eviction may or may not appear on your conventional credit report. If the landlord had to go to court to obtain your eviction, then your eviction may appear in various databases designed for landlords.

I hope this information helps you Find. Learn & Save.

Best,

Bill

www.bills.com/

Comments (1)


NJ E.
September 17, 2010
Investing in and managing nonresidential real estate properties can be difficult for even the most seasoned investor. There are many issues that can stop a deal in its tracks at the last minute and cause delays that cost you thousands of dollars and weeks of frustration. A New Jersey real estate lawyer can help you avoid these issues or to resolve them more quickly whenever you are building, purchasing, selling, or managing a property that is not a residential property. Knowing what kind of properties a nonresidential real estate lawyer deals with will help you decide when you need to hire an attorney.
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