- 1 How to Read the Renter’s Screening Report Part 3: EVICTION
- 2 Does An Eviction Show On a Credit Report?
- 3 Clean up credit before finding new apartment
- 4 How can you have an unlawful eviction remove from credit report?
- 5 Understanding a Tenant's Credit Report
How to Read the Renter’s Screening Report Part 3: EVICTION
Now that you’ve reviewed how to read the credit and criminal sections of your renter’s background screening report, it’s time to go over the final segment: evictions. As the 3 major credit bureaus have begun making plans to enact their National Consumer Assistance Plan (NCAP) on July 1, 2017, knowing how to analyze the eviction section is even more crucial. It’s predicted by Experian ® that the changes made by NCAP will affect about 96% of civil judgement data, meaning your applicants’ monetary civil eviction judgments may no longer show up on the major credit bureaus’ credit report section (potentially affecting your applicants’ score). By depending on the ApplyConnect ® ’s eviction information, and not solely on credit data, you’ll get a well-rounded understanding of whether or not a particular applicant is right for your rental property.
When you get to the “Eviction Search Results” on your applicant’s report, you see that it’s split into 2 parts: primary and secondary. The difference between primary and secondary repository eviction search results is that the primary search is concentrated around the western hemisphere, while the secondary search is taken from the national repository. Both results are important.
Primary and Secondary Repository Eviction Search Results
Both primary and secondary eviction search results are formatted the same. First, you’ll see the defendant’s name and the evicted address.. Then, you’ll see the information on the case, like filing date, case number, and the court name. If there was a monetary judgment, you’ll be able to see the judgement amount and notice type. The notice types you’ll find are:
Underneath the “Judgement Amount”, the plaintiff’s name and attorney, the disposition of the case and a phone number will be available.
Be aware that the FCRA mandates that eviction records should be reported for only 7 years, unless you live in Oregon where it’s kept for 5 years (Senate Bill 91). So if your applicant was evicted in 1995, it will not appear on their background screening report.
Understanding your applicant’s eviction data has become increasingly necessary as Experian ® , Equifax ® , and TransUnion ® shifts towards NCAP. While eviction records are currently only reported by the credit bureaus if a monetary judgement is attached, the new NCAP guidelines might require the bureaus to disregard even those records. Regardless, the eviction search results, in addition to the applicant’s credit and criminal data, should be factored into your rental requirements. If your applicant wants to dispute anything on their background report, they can contact us using the information at the bottom of the report or by going to the Renter’s Dashboard online. If you would like to learn more about the effects of NCAP, click here.
Need a refresher? Read part 1 and part 2 to learn more about the credit and criminal sections on your report and be sure to subscribe!
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Does An Eviction Show On a Credit Report?
A common question for tenants facing eviction is whether an eviction will show on a credit report. Tenants, understandably, are concerned about whether such cases will become a public record and be accessible by others.
According to the credit bureaus , the mere filing of an eviction case by a landlord will not, on its own, show on a tenant’s credit report. This makes sense: the mere filing of an eviction case does not mean that the tenant deserves to be evicted. If a tenant has a viable defense to an eviction case, the eviction will be unsuccessful.
However, if the landlord does succeed in an eviction case and the tenant owes the landlord money, the landlord can obtain a judgment for this owed amount. Such a judgment can be reported to the credit bureaus (the same as any owed debt). A landlord can also obtain a judgment if the tenant fails to show up to the scheduled court hearing; a landlord is permitted to obtain a default judgment, automatically giving the landlord possession of the property and the owed rent.
Although an eviction, on its own, may not show up in a credit report, evictions in Massachusetts are public record. Court records are available on masscourt.org and eviction cases can be searched a party’s full name. When an eviction is filed, it automatically becomes a public record and is accessible through this website. Several tenant screening services are said to search this website and create lists of filed eviction cases, to help landlords learn the rental history of a prospective tenant.
With this in mind, tenants need to be careful in resolving an eviction case with a landlord. If one of these cases is settled, the tenant should insist that an agreement for judgment or some similar paperwork be filed in the case to note that the matter was resolved amicably.
Clean up credit before finding new apartment
How do you go about having an eviction removed from your credit report?
My boyfriend and I want to rent a place together, but he has a few delinquencies we are taking care of, this eviction being the big one. His ex paid the company and had it taken off her credit report, but it was never taken off of his.
Keep in mind, it takes seven years before it falls off the report and my boyfriend is in year four. Thanks in advance for any information you can provide! -- Emily
How do you have true, negative marks removed from your account? You don't.
I think your boyfriend's ex may be confused as well. Here's why:
- You generally can't pay to have accurate information removed from your credit report. Credit reporting is not designed to work that way.
- Credit reports do not show records of evictions. According to Wayne Sanford, president of the credit consulting company New Start Financial, "If you are evicted, then it will show up as a collection as any apartment debt a consumer owes, such as cleaning fees or lease breaking."
However, it is true that paying off the amount your boyfriend owed his old landlord will improve his credit.
Sanford explains where some of the confusion may come from. He's heard of collectors making it sound like the debt will no longer be on your report once paid. That is partly true as the outstanding balance is shown as paid in full. However, he says, "The negative account and its reporting will stay on for another seven years from the last payment."
Sanford also notes, "Two of the largest apartment collectors, Hunter Warfield and Rent Debt, do not offer 'pay for deletions.'"
Here's what you and your boyfriend should do.
First, check both your credit reports, if you haven't done so already. You can pull them for free once a year from each of the big three credit bureaus at AnnualCreditReport.com. Never assume you know what's on them. If you see erroneous information, be sure to have those items removed by disputing them. If either of you have negative marks for which you have an explanation -- for example, if your boyfriend was unemployed or hospitalized when he fell behind on bills -- add a 100-word statement to your credit report.
Still looking at your credit reports, try to determine what you can do to improve your credit scores (you have to pay about $20 each to get your FICO scores at myFICO.com). You may boost your scores if you pay down your credit card balances, for example. You can also improve your credit utilization ratio by having your credit card's credit limit increased. (Don't use the higher credit limits, or you'll be in worse shape than before!) Pay off any other outstanding debts, such as medical bills, that show up on your reports.
When you apply for an apartment and your are asked for permission to pull your credit, you should explain remaining negative marks. There's no need to tell them your boyfriend has been evicted. Just point out his good history of paying rent and bills since then. Remember that negative marks from four years ago are far less relevant than more current information.
From now on, the best way to improve your credit score is to always, always pay bills on time. Consider setting up minimum payments with your bank online, so you never have late payments. When the bill comes, you only have to pay the remaining balance. When the two of you become fanatical about paying bills before they are due, your credit scores should start looking better, and your chances of landing the place you want should quickly improve.
How can you have an unlawful eviction remove from credit report?
Let’s learn how can you have an unlawful eviction remove from credit report. The most accurate or helpful solution is served by eHow old.
There are ten answers to this question.
If you do not pay your rent or otherwise break your lease terms, your landlord can go to court to evict.
Shula Asher Silberstein at eHow old
from over 10 years ago! I live in California and I was served with an eviction from my landlord at my first apartment back in 1994. I was young and foolish and could not pay the rent BUT I left within the allotted time I was requested to leave. It has.
Being served with eviction papers is being evicted. Just because you cooperated with the eviction does.
des at Yahoo! Answers
Evictions on your credit report can be removed; however, there is a process. You will also want to have.
patsy at Answerbag.com
Sorry no, A bankruptcy does not remove an eviction from your credit report. An eviction will appear.
2L2Q at Yahoo! Answers
I had an eviction on my credit and I paid if off. The problem is they credit company said that it could not be removed from my credit report even though it is paid off, they said that it will show the balance as being paid but it will still be on there.
A landlord will be more likely to pass you up for the next candidate. Do you have extra cash? Tell the.
whitney at Yahoo! Answers
yesterday I obtained a copy of my credit report and there are 2 things on it that I want to remove. ILL EXPLAIN-in hopes for better answers. LOL In 2006 My grandmother got a Chase credit card with a $500 credit limit. She made me an authorized user.
I recently learned I was an authorized user on one of my mothers cards that had been charged off. After.
Heather at Yahoo! Answers
My friend has an eviction on his credit report. Can he call the management office of where he used to live and get them to get it off if they agree?
No. it is a court record. However he can make it more favorable. If he was evicted due to non.
missthan. at Yahoo! Answers
Verizon won't remove their account off of my credit report, paid the bill in full directly to them not collections, I called them to verify that I paid, they said I have a ZERO balance, and that my credit score was dropped because of a "trimadge.
You cannot have a creditor removed from your credit report unless it was on your account by mistake.
Tamerlane T at Yahoo! Answers
How can I fix my credit report and remove bad reported payment history with a reporting company ??
you can remove incorect info on a report if the creditor does not respond to credit bureu dispute. you.
milkdud at Yahoo! Answers
I was denied an application to a rental property. They said there was an eviction on my record. I was never notified of anything prior to this. I PULLED MY CREDIT REPORT from ALL 3 CREDIT BUREAUS: nothing about an eviction. I see from the credit enquiries.
CoreLogic SafeRent is a CRA that deals with renters data. Since they are classified as a CRA (like Experian.
Jack P at Yahoo! Answers
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Understanding a Tenant's Credit Report
When a new tenant moves into your rental property, you entrust them to care for your investment. At the most basic level, tenants should keep your property in good condition and pay rent on time. Simple, right?
Whether you’re a seasoned landlord or just starting out, you know the answer to that question. Finding the right tenant for your rental is a ton of work. You need to create and post your listing, sort through leads, show the property and review applications. Phew. After you’ve narrowed down the applicants, you still need to ensure they are who they claim to be on their application.
While a potential tenant may look outstanding on paper and be a delight to talk with, one way to confirm they are the right renter for your investment is to fact check their application. This final screening process will help protect you against fraud and verify the applicant is a responsible tenant. A big part of the screening process is performing a tenant credit check. You may also want to verify and review the renter’s eviction history, criminal background, references and employment. Depending on how you run a credit report, many of these areas are also included for an additional fee.
KEY AREAS TO REVIEW WHEN SCREENING A RENTER:
Criminal background check
Landlord reference check
A credit report is a detailed snapshot of a person’s borrowing history that typically includes information from banks and other financial institutions, creditors (if there is an overdue bill, for example) and public records (if there is a lien against them or their property, or if they have filed for bankruptcy). A credit report will likely contain your potential renter’s credit score as well.
If the applicant has ever had a car loan, credit card or student loan (among many other types of debt), he or she should have a credit report. You’ll want to look holistically at this report to determine if the tenant meets your requirements — not just focus on one aspect like their credit score.
A credit report helps demonstrate a tenant’s history of responsible borrowing, meaning they pay their debts on time (and are therefore more likely to pay rent on time). It also shows if they can afford to live in your rental property. In addition, a credit report verifies the information in a tenant’s application. It is important to note, though, that credit reports can contain errors. Some estimates show one in five people have errors on their reports. So, if something doesn’t add up, ask the applicant about it before moving on to the next candidate.
WHAT IF MY RENTER DOESN’T HAVE A CREDIT REPORT?
There are a number of reasons your possible renter doesn’t have a credit history: they could be a young, first-time renter who is just starting to build credit, they could be wary of banks or they may even be supplying you with false information. There are several ways to screen a tenant without a credit report, including employment verification and criminal background checks. It is up to you to verify their application and ultimately determine if they are the right renter for your investment property.
How do you obtain a tenant’s credit report?
There are several ways to run credit checks on potential tenants. The three main credit bureaus — Equifax, TransUnion and Experian — offer easy-to-use services to landlords for a fee, usually ranging from about $15 to upwards of $35 depending on additional data requested (like a criminal background check). You can determine if you want to absorb the cost or pass down the fee to your renter, but first check to see what the rules and regulations are in your state around application and credit-report fees. Some states set a maximum amount for these fees.
If you have a high volume of applicants you need to screen, signing up for a regular service may provide a more cost-effective credit check option. You will need to go through a credentialing process but will have a lower cost per report. Don’t skip out on the credit report because of the cost: It gives insight into your potential renter’s financial stability and the security of your investment.
Before you run any reports on potential tenants, consider whether notice may be required under federal or state laws. Since your renter will need to provide sensitive personal information, such as their social security number, many online services let the applicant provide the personal information themselves. You just need to input their email address and the service does the rest. Once the tenant adds their information, you will receive a notice and can review their credit report online.
Know what to look for in a tenant credit report
You need to have an idea of what constitutes an acceptable borrowing history and determine your risk tolerance before you review tenants’ credit reports. Maybe an applicant has an outstanding medical bill, went through a divorce or is recovering after a period of unemployment. Know your deal breakers, and make sure you understand your local laws and your landlord rights. Think about what kind of debt and what debt ratio is acceptable to you, and decide if you’re willing to work with someone who has less-than-perfect credit.
Interpreting a potential tenant’s credit report
Reports from different bureaus and services look slightly different, but on the whole, credit checks should contain similar information.
At the top of the report you’ll find applicant information such as their name, employer and current and past addresses.
Reading down the report, you’ll see a summary section which include records of the following:
- Derogatory items: The number of public records against a potential renter (like a tax lien or bankruptcy filing) and the number of accounts in collections, past due or negative accounts. You should review this section closely, as it will give you a look at the overall financial health of your applicant.
- Revolving account summary:The number of accounts (trades), total balance, monthly payments, credit limits and the percentage of credit available (i.e., how close the applicant is to their limit).
- Installment account summary and mortgage account summary:Same type of information as revolving accounts.
- Closed with balance:Accounts that have been closed and carry a balance.
- Totals:The totals of all the balances, limits, monthly payments and percentages of credit available.
This alerts you to potential fraud, and you will likely want to review and verify additional information with your renter.
Depending on the service and credit bureau you use to pull your report, the score will be different. Common scores include the FICO© score and the VantageScore. Both models generate scores within the range of 300-850. A general rule of thumb for reviewing credit scores is: