Since 2011 Federal tax liens can be withdrawn as soon as they are paid but you have to take the initiative. Google "withdrrawing tax liens" for detaiis. It's guaranteed and is the only PFD thaat always works.
Here's the form you file with the IRS to get the lien removed:
http://www.irs.gov/pub/irs-pdf/f12277.pdf
@nycfico wrote:My scores are in the mid 630's. 6 baddies ranging from 4 to 6 years ago on charged off credit cards, plus a federal tax lien issued in March of 2014, which I've been making payments on each month and have the balance down from $75k to $60k.
I understand that liens will stay on your record (if you don't go through the fresh start program) for 7 years from the date that they are PAID, not the date they are placed.
So, is it accurate to think that each month it is not paid, it's basically the same thing as it being placed anew for Fico score purposes? In other words, while my baddies from years back are aging and having less impact through time, is the lien basically new, even though it's been over a year since it was placed?
I seem to have hit a ceiling with my scores, no matter what I do with utilization and despite the fact that I now have gone two years with no late payments on anything (and about four years with any seriously late payments...I had a 30 day mistake a little over two years ago). I'm thinking that it's a sign that my scores would jump up signficantly (I had about 15 years of perfect credit before the 2008 meltdown), but that effectively I'm getting a lien placed each month.
Anybody with experiences on this?
None of my liens behaved like that and I've had a number.
When a lien is filed it's recorded with the date, and that date stays fixed. Look on the credit report, it should give something akin to (from Experian):
Date Filed: 12/22/2010
Date Resolved: 11/04/2011
Responsibility: Individual
Tax liens can and will depress your score for a substantial amount of time. None of the liens I have had, regardless of payments made, ever updated until they were paid off and released. They behave like every other derogatory in the algorithm though, filing date, and then time heals (slowly with tax liens) the wound.
@Revelate wrote:
@nycfico wrote:My scores are in the mid 630's. 6 baddies ranging from 4 to 6 years ago on charged off credit cards, plus a federal tax lien issued in March of 2014, which I've been making payments on each month and have the balance down from $75k to $60k.
I understand that liens will stay on your record (if you don't go through the fresh start program) for 7 years from the date that they are PAID, not the date they are placed.
So, is it accurate to think that each month it is not paid, it's basically the same thing as it being placed anew for Fico score purposes? In other words, while my baddies from years back are aging and having less impact through time, is the lien basically new, even though it's been over a year since it was placed?
I seem to have hit a ceiling with my scores, no matter what I do with utilization and despite the fact that I now have gone two years with no late payments on anything (and about four years with any seriously late payments...I had a 30 day mistake a little over two years ago). I'm thinking that it's a sign that my scores would jump up signficantly (I had about 15 years of perfect credit before the 2008 meltdown), but that effectively I'm getting a lien placed each month.
Anybody with experiences on this?
None of my liens behaved like that and I've had a number.
When a lien is filed it's recorded with the date, and that date stays fixed. Look on the credit report, it should give something akin to (from Experian):
Date Filed: 12/22/2010
Date Resolved: 11/04/2011
Responsibility: Individual
Tax liens can and will depress your score for a substantial amount of time. None of the liens I have had, regardless of payments made, ever updated until they were paid off and released. They behave like every other derogatory in the algorithm though, filing date, and then time heals (slowly with tax liens) the wound.
Yeah, they are killers. My FICO jumped 70 points when a paid, 5 y/o lien was removed. They hurt bad, paid or unpaid for a long time. They don't update though, they just kill your scores.
OP should get it removed ASAP as soon as it's paid.
@6speed8 wrote:Agree with cash.... Even though my lien was due to refund fraud, I spent three years battling the IRS over it and finally went the Offer In Compromise route to get rid of it ASAP. It was settled in December. I didn't bother following my credit scores up until January when I finally paid my lawyer off to file my Ch7. I downloaded the Credit Karma app and I was at 505/515. With no other changes - no new credit, Ch 7 not even in discharge, with the lien being reported as paid, I was at 587/592 by the beginning of May.
Vantage Score (CK) doesn't appear to count paid tax liens.
That's absolutely not the case with any FICO algorithm currently released certainly through FICO 8, and probably not through FICO 9: they penalize regardless of open or released... I wish it worked otherwise, but sadly that's not the case. That's an interesting datapoint for VS though, matches what I saw with my own liens.