Moving out of the "Tax Lien" bucket

[jackg]

I've noticed,recently, a number of posts regarding Tax Liens, so I thought I would ask my question.

My tax lien was released in April 2001 and therefore is scheduled to "fall off" my CR's in April this year. Is there anything I can/should do, in advance, to remind the CRA's of this event? Or, are their systems sophisticated enough that they will be removed without human intervention? It seems logical that moving out of the "Tax Lien" bucket could prove to be a positive thing. I will not however, move out of the "PR" bucket because I have a CH 7 BK filed in May 2006 so it'll be a while for that one.

[fused]

The lien should fall off, but this doesn't mean you will change buckets. Liens, BKs and judgments are all public records and one is not treated any differently than the others with regard to FICO scoring and buckets.

[jackg]

Fused,

Certainly I'm not an expert, however, my view of this bucket is different than yours.

PR's fall in the bucket called "Payment history" accounting for 35% of your FICO score. There are 6 more headings under "Payment History" and each of those 7 sub headings varies in breakdown from one item to eight items. The sub heading  ID'd as "Presence of Public Records" is where BK's, Tax Liens, Suits, Judgements, Wage Attachments, Collections & Delinquencies reside. If all these items were reporting to your credit report then, my reasoning would be that your bucket is "full", and as items fall out of your sub heading, with all other things not being considered your score should rise, and as time goes by, until eventually there's nothing in that sub heading, what happens? Your score improves with each deletion.

In other words, someone whose report contains all items of "PR's" has a lower score than someone who has one less item. Agree?

[fused]

It doesn't matter if you have 20 PRs or other serious derogs such as 90+ day lates, CO, collections. All it takes is one of these and you will be in the same bucket as someone with one or more of any of these. It's an all or none thing.