Can Credit Repair Remove Evictions?

Are you in need of credit repair? Do you have an eviction on your credit report from a previous judgment? 

If so, you may have more options than you realize. Can credit repair remove evictions?

The answer is yes, but only after a certain amount of time has passed. Then, you must go through a certain protocol to remove the eviction. For the best course of action, contact a credit repair company. 

This article will further answer how credit restoration can remove evictions. Read further to know more.

The Seven-Year Rule

An eviction won’t go on your credit report until your landlord reports it to a debt collection agency. First, the landlord will sue you for the balance owed. After winning the judgment, they will report the debt to a collection center. After, the judgment will go on your credit report. 

From there, the eviction will stay on your record for at least seven years. The eviction record will remain on your report whether you paid the balance or not. After seven years have passed, you can file a petition to have it removed.

To get the best possible outcome, enlist the aid of a credit consultant for further guidance. Credit consultants can also help you remove errors in your report.  

Renting With Eviction on Your Record

It can be difficult to rent an apartment with an eviction on your report because future landlords assume you’ll fail to pay rent in the future. 

Further, the eviction notation will reduce your score exponentially, making it harder to obtain an apartment. Overall, you’ll need a score between 620 and 650 to get approval, but the standards depend on the landlord. If you incur a civil judgment from eviction, it will drag down your score by as much as 100 points or greater.

In many cases, landlords receive multiple applications for a single unit. They will choose the application with the highest credit score. If you have an eviction on your report, you could be placed at a disadvantage during the rental process. 

Steps to Take

That said, you can still rent a with an eviction on your record if you take the following measures:

  • Explain the Situation: Always be honest and upfront, and don’t try to hide your eviction. Instead, explain the circumstances behind the eviction. Smaller landlords (those without property management companies) may be more willing to work with you.
  • Provide Additional References: You can provide additional contacts that will vouch for you. If you have more references and pass a background check, the landlord may overlook the eviction. 
  • Pay a Higher Deposit: Landlords are more likely to impose higher deposits on applicants with bad credit scores. You can also volunteer to pay a higher deposit. 
  • Provide Proof of Income: Landlords may look beyond your rental troubles if you show a stable income source. Show them documents in the form of W-2, bank statements, or pay stubs. 
  • Find a Co-Signer: A landlord may feel more at ease if have a co-signer. Be aware, however, that your co-signer will be liable if you fall behind on payments. 
  • Improve Your Credit Score: This is the best option, and it’s not as hard as you may think. However, it can be difficult if you don’t have professional guidance. Therefore, contact a credit repair consultant to know various ways to increase your score. 

The Ramifications of a Reduced Score

Since evictions lower your score, it could hamper your ability to gain credit in other areas of your life. A reduced score will restrict your ability to qualify for a mortgage or obtain a car loan. This is because most lenders will view you as a credit risk.

If you can obtain a loan, you could pay a higher interest rate, thus increasing the likelihood of loan default. A higher interest rate will add more to your monthly payments.

Additionally, many low-credit borrowers resort to payday loans. Payday lenders can charge APRs in the range of 400% to 700%. 

A low credit score can affect you in other ways:

  • Employment Opportunities: Some professions (i.e. financing or government) require employees to have good credit. In other cases, some employers reserve the right to check your credit before hiring you. With your permission, the employer will check your credit profile. They won’t see your score, but they’ll see what type of accounts you opened and how many balances you have.
  • Utility Requirements: If you have low credit, utility providers may charge a higher fee. They could even deny your application, but they must provide a reason for doing so. Internet and cable companies can deny service as well or charge additional fees. 
  • Insurance Payments: Insurance providers can charge you a higher rate if you have a lower credit score. If your score drops below 600, however, insurance companies won’t cancel your policy. 
  • Building Wealth for Retirement: A poor credit score could hamper your ability to build a retirement nest egg. The higher fees you’ll pay from loans and deposits will restrict your ability to save. 

The Importance of Credit Repair

Credit repair services will help you boost your score. Without a decent score, you may not get access to loans and utilities.

A lower score could impede your ability to rent a home as well. Even though evictions can stay on your record for seven years, you can remove the record with a petition. That said, consult an expert before taking steps to remove the eviction.

Do you need credit repair counseling? Contact us today to see how one of our representatives can help you. 

Don’t let bad credit hold you back from the life you want.