02-02-2009 12:54 PM
My credit was in the mid 700's up until a few months ago while I was in the process of purchasing a home. During the construction period (new home), a tax lien hit my credit reports which I haven't paid yet but will soon.
I was able to close on my home successfully because they didn't run my credit reports prior to settlement (thankfully).
Now, my mortgage hasn't yet appeared on my credit reports and probably won't until early March.
With an open lien, are there any credit cards worth applying for with scores in the 680's and no other negatives?
If so, should I apply before or after my mortgage hits my reports?
02-03-2009 11:31 AM
some banks- wells fargo + poss. us bank + citi will AUTO deny you if you have an unpaid tax lien showing. others are tax lien unfriendly, esp. if the lien is new.
some banks- merrick- will AUTO deny you if you have a recently obtained mortgate
some banks- nearly all of them- will/can do AA/RJ/CLD/close accts if they think you're seeking too much credit
btw BEFORE you pay, make sure the lien will be WITHDRAWN. even if you pay the lien, it CAN stay on your reports for a # of years.
btw, be prepared for the irs/state tax board to take out ANOTHER lien against your property once they discover it.
tax liens are a BEAST
02-03-2009 03:51 PM - edited 02-03-2009 03:51 PM
02-03-2009 03:56 PM
02-03-2009 04:04 PM
02-03-2009 05:49 PM
Is it true that you'll only be threatened with a tax lien if the IRS contacts you about backtaxes and you say (by words or actions), no way .. I'm not paying
In other words, if they feel you owe additional back taxes and if you are immediately cooperative and make arrangements to pay either all at once or with a payment plan, are you safe from ever having to worry that they'll still go ahead and put the lien on your report ?Message Edited by MojaveMoon on 02-03-2009 03:51 PM
I know people who have unpaid back taxes for 15 years never got a tax lien. It's a roll of the dice.
02-03-2009 05:51 PM - edited 02-03-2009 05:52 PM
Is there a contradiction between what creditreformer and smallfry said ?
"btw BEFORE you pay, make sure the lien will be WITHDRAWN. even if you pay the lien, it CAN stay on your reports for a # of years."
"Tax liens remain on your reports 7 years from the date you pay it off."
It sounds like one person is saying that once a tax lien is on your report that you can request at any time that it be withdrawn, while the other person seems to be saying that a tax lien can never be withdrawn from the report.
Or is one person saying that the tax lien be withdrawn ... but ONLY if the request is made prior to paying the tax lien -- If the request is made after the tax lien is paid, then it's too late
Once the lien is on the reports you have to dispute it off. Make sure you do it correctly the first time or it will most definitely remain for the full 7 years. Make sure to investigate how to do it before you attempt to do dispute.
02-03-2009 08:53 PM
Mojave, the irs can/has issued tax liens on anyone who (according to the irs) owes taxes. I've seen liens filed for $50 + i've seen liens filed for $100k+. I've seen duplicate liens filed- and good luck getting THOSE removed. I've seen liens renewed. I've seen liens filed ERRONEOUSLY.
Once the lien is on your reports, it is VERY hard to remove. There’s a conflict between the bureaus on how long liens stay on your reports. It is VERY much ymmv and you have to be VERY careful on how you approach it. there’s a difference between a lien being released + a lien being withdrawn.
Another sticky issue is that liens can be RENEWED which often resets the clock for reporting. Another sticky issue is that the date for removal purposes starts when the lien is PAID, not the date the lien is filed. Unpaid liens often drop off after 10-15 yrs (sometimes early- again ymmv), but if you pay in say yr 9, the lien then stays on your reports for another 10 yrs. As I said, liens are a BEAST + it is very hard to recover fico wise. not to mention, liens can lead to liens against property, bank accts garnished, wages garnished + a whole host of other less than pleasant things.
depending on the $ amount involved, it may be prudent to contact a tax/legal professional.
02-05-2009 11:02 PM - edited 02-05-2009 11:08 PM
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.