Daniel Rosen explains how evictions damage credit and how to fight back. Evictions don't appear directly on credit reports but stay on court records for seven years. His five-step process: settle the debt, get written removal agreements, request removal from tenant-screening reports, verify the removals, and dispute any remaining inaccuracies with bureaus.
Questions this video answers
About 7.6 million people evicted each year (2007–2016).
More than 50% higher in a lot of cities (post-pandemic vs. pre-pandemic average).
Over 10% (more than double the risk for those without children).
Typically up to seven years (court/public records).
Up to seven years (derogatory collection account on credit reports).
Chapters
Hey, credit heroes. Dealing with an eviction can be really, really scary, especially when it lands on your credit report. And the number of evictions continues to rise every year. That's why today I'm going to explain exactly how evictions impact your credit score and how you can remove them. So you better stick around. My name is Daniel Rosen, and welcome to Credit Repair Business Secrets. 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 an eviction? I have, and it was so terrible and so embarrassing. And I didn't even get evicted because I did anything wrong. I was a great tenant. I paid my rent on time, I fixed my own stuff, and I left my landlord alone. But my landlord was really, really mean and he evicted me so that he could raise the rent. It was terrible. We went to court and I thought I had a great case. But then he said all this terrible stuff about me that wasn't true and I lost. And 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 ra. 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% higher than the pre pandemic average in a lot 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, families out there. The eviction rate for people living with a child is over 10%, more than double the risk for those without kids. Additionally, ever increasing costs of things like groceries and childcare, plus reduced working hours or discrimination from landlords, which make evictions even more of a threat. Here's a thing to remember. Evictions can be tricky when it comes to credit repair, but understanding how they impact your credit and and how to bounce back from them is key. Now, I say tricky because evictions usually won't show up on your credit report 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 the eviction can still give your credit a bit of a hit and 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. And 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 now they have a collection account open, their credit reports will have a derogatory mark for that collection and and that can stay on their credit report for up to seven years. So that collection account will negatively impact your credit score beyond credit. If a legal case is brought up to evict a tenant, that case file can be accessed indefinitely through the court records. While evictions may 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, 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 to try to avoid the 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. Now, if you're being evicted for non payment of rent and you are still in the process, you want to try to do everything in your power to fix the problem before going to court. Seriously settle. Pay back the rent. Work with the landlord to come to a solution. Do 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 you can 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 any collection 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 the tenant screening report and five Dispute any inaccuracies related to the eviction with the credit bureaus and the 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 very stressful thing that happens to so many people. They can be unfair and they can make it hard to find your next home. As eviction rates continue to rise, we have to be prepared to help a whole lot of people. And I'll end by saying, if you want to learn which items you should never, ever dispute, watch this podcast right here. And if you'd like to get certified in disputing and gain confidence and grow your very own credit repair business, check out our Credit Hero Challenge or Doors are closing soon, so sign up right now@creditherochallenge.com and keep changing lives.
