For many, an eviction can be devastating. Not only does this leave you uprooted from your home, but, in many instances, it can impact your ability to find housing in the future. Unfortunately, depending on the reason behind the eviction, it can also affect your credit score. As such, the following blog explores what you should know about this matter, as protecting your credit score in these instances is critical. Keep reading to learn more about these difficult issues as well as the importance of contacting a California debt collection defense lawyer to explore your legal options.
Will An Eviction Appear on My Credit Score in California?
First and foremost, it’s important to understand that an eviction will not appear on your credit report. However, the reason for your eviction may be reported. For example, if you are evicted for violating the terms of your lease by doing renovations in your apartment, it will not appear on your report. However, if you are evicted for non-payment, it will likely appear on your credit report.
Your landlord or property manager acts as a creditor when you rent a property or apartment. As such, failure to make on-time payments can be reported to the credit reporting bureaus. Additionally, if your landlord or property manager sends your debt to collections or sells it to a third-party debt collector, it will also be reported to the credit bureaus.
A debt on your report can result in a drastic decrease in your credit score, which, when a debt is reported, can lower your score up to 100 points. If this represents your circumstances, you may want to connect with an experienced attorney to discuss potential debt relief options, such as negotiating a settlement amount.
What Can I Do to Rebuild My Credit?
If you have been evicted due to non-payment, the impact it can have on your credit score can be significant. However, it’s important to understand that there are steps you can take to rebuild and improve your score.
One of the most important things you can do to improve your credit score is to set a strict budget and stick to it. Unfortunately, eviction can uproot your life, so it’s imperative to take the necessary steps to ensure that you aren’t spending more than you can afford. As such, you should take inventory of all expenses and income to create a budget.
Generally, one of the most important things you should consider is applying for a credit builder loan. This essentially is a loan you take out for the sole purpose of paying it off. These loans are typically higher interest, but allow you the opportunity to help improve your credit score, as you’ll be able to make the monthly payment to improve your borrowing and payment history.
As you can see, there are a considerable number of factors that must be taken into account when you are facing eviction. If your credit has been impacted, it’s important to understand how the team at Loker Law, APC, can help you navigate these difficult times. Contact us today to learn how we can assist you.
