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Regular Contributor
K_J
Posts: 209
Registered: ‎01-31-2012
0

Does a Paid lien still affect your score

I need an answer from the experts please...I called my lender and asked if a paid lien on my CR still affects my score, she told me no as long as it has been paid, is this true someone please help?


Starting Score: EQ: 532, EX: 569, TU: 621 (All lender pull 10/15/11)
Current Score: EQ: 660,lender pull 4/13, EX: 671 lender pull 4/13, TU: 691 lender pull (4/13)
Goal Score: 700


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LondonMassey
Posts: 453
Registered: ‎01-03-2012
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Re: Does a Paid lien still affect your score

I have a lien from the IRS that I paid in full in 2009 and it was released.  I just got my first credit card in 11 years in September, no other tradelines and no collections on my credit since 2007 which was one medical bill for $350 that they neglected to bill to my insurance.  Before that, no collections since 2005 which were also medical and a defaulted student loan that has been paid in full, as well.  I was pre-approved and my scores as of Feb 6th are listed below in my signature.

Cap1(sc) 550, Cap1 750, Walmart 750, Home Depot 3000, Amazon 700, US Bank 1500, Childrens Place 1100, JC Penney 700, Old Navy 700, PayPal 700, Torrid 700, Lane Bryant 150, Avenue 500, OSP 500, Amex Blue 2000, Disc it 1000, Walmart Disc 2200, Old Navy Visa 1700, Mortgage 09-2012, Car Loan 03-2013



Current Score: EQ 665 EX 687 TU 695


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Regular Contributor
K_J
Posts: 209
Registered: ‎01-31-2012
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Re: Does a Paid lien still affect your score

Thank you for that information, My Lender said it shouldnt change my score since it has been paid, but i thought I read in the forum that it does.


Starting Score: EQ: 532, EX: 569, TU: 621 (All lender pull 10/15/11)
Current Score: EQ: 660,lender pull 4/13, EX: 671 lender pull 4/13, TU: 691 lender pull (4/13)
Goal Score: 700


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Frequent Contributor
LondonMassey
Posts: 453
Registered: ‎01-03-2012
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Re: Does a Paid lien still affect your score

Unpaid liens hit your credit hard initially... released liens shouldn't decrease your score.

Cap1(sc) 550, Cap1 750, Walmart 750, Home Depot 3000, Amazon 700, US Bank 1500, Childrens Place 1100, JC Penney 700, Old Navy 700, PayPal 700, Torrid 700, Lane Bryant 150, Avenue 500, OSP 500, Amex Blue 2000, Disc it 1000, Walmart Disc 2200, Old Navy Visa 1700, Mortgage 09-2012, Car Loan 03-2013



Current Score: EQ 665 EX 687 TU 695


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Frequent Contributor
LondonMassey
Posts: 453
Registered: ‎01-03-2012
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Re: Does a Paid lien still affect your score

To add to that... paying old delinquencies on your credit can hurt your score because it reactivates it BUT a lien is different than a collection.

Cap1(sc) 550, Cap1 750, Walmart 750, Home Depot 3000, Amazon 700, US Bank 1500, Childrens Place 1100, JC Penney 700, Old Navy 700, PayPal 700, Torrid 700, Lane Bryant 150, Avenue 500, OSP 500, Amex Blue 2000, Disc it 1000, Walmart Disc 2200, Old Navy Visa 1700, Mortgage 09-2012, Car Loan 03-2013



Current Score: EQ 665 EX 687 TU 695


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Established Contributor
veracious
Posts: 680
Registered: ‎04-21-2010
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Re: Does a Paid lien still affect your score

[ Edited ]

K_J wrote:

I need an answer from the experts please...I called my lender and asked if a paid lien on my CR still affects my score, she told me no as long as it has been paid, is this true someone please help?


Hi, K_J.   In answer to your question, you may find this link helpful.

 

Hope this helps.  Good luck, and enjoy your new higher score.

 

Paid and Withdrawn IRS Tax Liens to be Removed From Credit Files

http://www.smartcredit.com/blog/2011/02/25/paid-irs-tax-liens-to-be-removed-from-credit-files/

 

_________________________________________________
"You may never know what results come of your actions,
but if you do nothing, there will be no result" ~ Mahatma Gandhi
Valued Contributor
rckstrscott
Posts: 2,660
Registered: ‎04-25-2011
0

Re: Does a Paid lien still affect your score

[ Edited ]

LondonMassey wrote:

To add to that... paying old delinquencies on your credit can hurt your score because it reactivates it BUT a lien is different than a collection.



This is not true. Once a deliquency hits your report, the damage is already done. A paid/unpaid collection, a paid/unpaid tax lien, a paid/unpaid judgment, all impact your score the moment it hits, and the damage lessens as it ages. Paying a tax lien will not impact your score in any way shape or form.

 

Paying off deliquent accounts will never result in a point loss, or a point gain. Only changing this information (ie deleting from your file, recoding something from a neg to a pos) will change your score.

 

Removing the lien (if its IRS) is fairly easy now, but if its state it really depends on the state.

 

I paid of a state tax lien last month, and it had no impact on my score (as I expected)

 

-scott

Starting FICO Score: 10/10: TU 498 | EQ: 502 Current FICO Score(lender pull): 09/14: TU: 784 | EQ: 752 | EX: 784
Collections Removed: Hunter Warfield, CBE Group, Merchants Credit Guide, EOS-CCA, Enhanced Recovery, Portfolio Recovery, UCB, American Collection Company, Medical Business Bureau, Jefferson Capital, Credit Portfolio Associates, FCO, LVNV, Convergent, Armor Systems
Other Negative Entries Removed:Plains Commerce CO, HSBC CO, 2008 Judgment Santander Reposession


Positive Accounts:10/10: 0 | 07/12: 6 | Mortgage Closed 5/12, Macy's AMEX $13900, Citi/Home Depot $8500, Capital One Cash Rewards $3500, BOA $7500 Total Utilization: 3%. AAoA: 2yr, 9mth. INQS: 1 TU, 1 EQ, 3 EX
Regular Contributor
K_J
Posts: 209
Registered: ‎01-31-2012
0

Re: Does a Paid lien still affect your score

[ Edited ]

Veracious,

Thank you for the link, it is informative and helpful.


Starting Score: EQ: 532, EX: 569, TU: 621 (All lender pull 10/15/11)
Current Score: EQ: 660,lender pull 4/13, EX: 671 lender pull 4/13, TU: 691 lender pull (4/13)
Goal Score: 700


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Regular Contributor
K_J
Posts: 209
Registered: ‎01-31-2012
0

Re: Does a Paid lien still affect your score

[ Edited ]

My LO told me since I have paid the lien it shouldnt hurt my scores. But what your saying rckstrscott is if I have the state remove the negative (ie lien) from my CR my scores should go up? correct?


Starting Score: EQ: 532, EX: 569, TU: 621 (All lender pull 10/15/11)
Current Score: EQ: 660,lender pull 4/13, EX: 671 lender pull 4/13, TU: 691 lender pull (4/13)
Goal Score: 700


Take the FICO Fitness Challenge
Valued Contributor
rckstrscott
Posts: 2,660
Registered: ‎04-25-2011
0

Re: Does a Paid lien still affect your score


K_J wrote:

My LO told me since I have paid the lien it shouldnt hurt my scores. But what your saying rckstrscott is if I have the state remove the negative (ie lien) from my CR my scores should go up? correct?



Hands down it will go up, probably by at least 20 points, if you remove a tax lien.

 

-scott

Starting FICO Score: 10/10: TU 498 | EQ: 502 Current FICO Score(lender pull): 09/14: TU: 784 | EQ: 752 | EX: 784
Collections Removed: Hunter Warfield, CBE Group, Merchants Credit Guide, EOS-CCA, Enhanced Recovery, Portfolio Recovery, UCB, American Collection Company, Medical Business Bureau, Jefferson Capital, Credit Portfolio Associates, FCO, LVNV, Convergent, Armor Systems
Other Negative Entries Removed:Plains Commerce CO, HSBC CO, 2008 Judgment Santander Reposession


Positive Accounts:10/10: 0 | 07/12: 6 | Mortgage Closed 5/12, Macy's AMEX $13900, Citi/Home Depot $8500, Capital One Cash Rewards $3500, BOA $7500 Total Utilization: 3%. AAoA: 2yr, 9mth. INQS: 1 TU, 1 EQ, 3 EX

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