How to Improve Your Credit Score After an Eviction

An eviction may or may not damage your credit report. It all depends on how your landlord handled the situation. Some landlords will not take any action against you if they can rent out your unit in a reasonable amount of time. A landlord could purse legal action in a court of law and win a judgment. This process will be damaging to your credit history. If your credit report is damaged, there are some things you can do to improve your score.

Instructions

1

Pay all of your debts on time right now and in the future. When you pay on time, it helps to boost your credit score. Approximately 35 percent of your credit score is derived from your pay history. Also, pay down your other debts. When you pay off other debt,s it helps to lower your credit usage, which in turn helps improve your credit score.

2

Wait a while. If your landlord had a judgment placed on your credit file, initially your credit score will decrease. The longer the judgment is on your credit file the less of a negative impact it has. After two or three years, you will see the negative impact of the judgment lessen. Your other credit accounts will contribute more of a positive effect on your credit file. After seven years, the judgment will fall from your credit file. When you reach the five- or six-year mark the damaging effect will be minimal.

3

Negotiate with the landlord. When you were evicted, you probably were not in a good financial situation; however, if things change, you may be able to negotiate with your ex-landlord regarding the judgment amount. As part of your agreement to pay he must have the derogatory information removed from your file.

4

Don't apply for any new credit. Those credit inquiries can help to bring down your credit score. This is especially true if you incur a lot of inquiries in a short period of time, such as seven or eight inquiries in 30 days. Also note that inquiries fall from your credit file in two years. Unfortunately, if you have to apply to rent another apartment at several complexes, it will damage your credit score. When a prospective landlord sees an eviction, they most likely will not rent to you. Any prospective landlord that looks at your credit report will see all of the previous inquiries; if you have applied elsewhere, they may assume that you were probably rejected as a tenant elsewhere.

5

Order a free copy of your credit report and check for any errors. If there are items that should not be on your credit report, you can contact the credit reporting agency to have them removed through their dispute process. Any derogatory information reported on your credit report that is not yours can still hurt your credit score.

6

Don't close out your older accounts. The length of your credit file contributes to your credit score. The longer you have been on file with the credit reporting agencies, the better. Suppose you only have two accounts on your credit file and one is 10 years old and the other five years old. If you close out the account that is 10 years old, your score will be reduced. Now it looks as if your credit file is only five years old instead of 10.