For many, the idea of being evicted can be incredibly overwhelming and anxiety-inducing, as it can leave you without a place to call home. As such, if you are facing eviction, you may have a considerable number of matters to consider, like where you will go in the event this should happen. However, it’s also important to understand that this can potentially impact your credit score. The following blog explores what you should know about these complicated matters, including the benefits of working with a California consumer lawyer to help you explore your legal options during these difficult times.
How Can an Eviction Impact My Credit?
First and foremost, you’ll find that if you are evicted from an apartment or rental unit, it will not appear on your credit report. However, if the reason for your eviction is non-payment, the debt you owe to the landlord or property manager can appear on your credit report if they sell the debt or hire a collection agency to pursue the funds they are owed. This can drastically decrease your credit score.
If possible, you should discuss alternative options with your landlord to avoid an eviction. While the actual eviction may not show up on your credit report, you’ll find that it can appear on your rental history. This can result in difficulty finding an apartment, as landlords and property managers may not be willing to lease to someone with a prior eviction.
One option to avoid an eviction is to discuss potential payment options with your landlord. This can include breaking the lease without consequences and starting a monthly repayment plan. If you pursue this option, be sure to get all agreements in writing.
What Can I Do to Improve My Credit History?
If your credit score has suffered because of an eviction and outstanding payment, it’s important to understand your options to improve your score. Generally, one of the best steps you can take is to begin budgeting to ensure you can make your payments on time and avoid racking up too much debt.
However, you may want to consider applying for a credit builder loan. This is a loan you can take out with the intention of simply paying it back to improve your credit, rather than taking out a loan because you need access to the funds. By making on-time payments throughout the duration of the loan term this can help build your positive history, leading to an increase in your credit score.
Facing an eviction or outstanding payments related to your apartment can be overwhelming. That is why working with an experienced consumer defense attorney with Los Angeles Legal Solutions is in your best interest, as our team can examine your circumstances to determine the best possible outcome, such as negotiating a settlement amount for the debt you owe. Contact us today to learn how we can assist you.
