Credit Cards Center Credit cards from our partners
Reply
Frequent Contributor
Posts: 385
Registered: ‎02-06-2009
0

Tax Lien effect on score

Does the age of a tax lien affect credit score?

 

Put another way, will a CR with a 1-year old Tax Lien have a lower score than a CR with a 2-year old Tax Lien, which in turn has a lower score than a 5-year old Tax Lien?

 

I have a tax lien that's been released.  The CRA shows an incorrect release date of 01/2009. The true release date is 04/2007.  Just wondering if it's worth the effort to get the date corrected.


Current Score 08/20/2015 - TU 794 (Discover TU FICO® Score 8)
Current Score 07/28/2015 - EQ 786 (Citi EQ FICO® Bankcard Score 8)
GOAL - 800! - App free since 05/18/2015
Moderator Emerita
Posts: 28,098
Registered: ‎04-01-2007
0

Re: Tax Lien effect on score

Yes. Derogs vary in their damage by recency, frequency, and severity. In your example, the liens are equally severe (they're all tax liens), but the more recent, the more damage.

They'll never stop hurting completely until they're off your report, though. In fifteen years.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Established Contributor
Posts: 569
Registered: ‎04-26-2007
0

Re: Tax Lien effect on score

brother7,

 

Which CRA is reporting the time difference of 20 months? What do the other 2 CRA's report? Is it possible that the 4/2007 date is when the tax lien was filed and then you paid it off until late 2008. Tax liens stay on your credit report for 7 years after the date of release.  

 

I've never heard of any negative info. remaining on your credit report for 15 years. It may be true but I've never heard of it. I know for a fact that it's 7 years for a released tax lien.

FICO scores on November 17, 2014 (prior to applying for and being approved my mortgage)

EX=738
EQ=735
TU=754

FICO scores on March 4, 2015 after being approved for mortgage and buying the home, the mortgage isn't yet reporting.
EX- 689 EQ- 739 TU- 739
Frequent Contributor
Posts: 385
Registered: ‎02-06-2009
0

Re: Tax Lien effect on score

The original filing date of the lien was 12/2003. All 3 CRAs show the tax lien.

 

When I ordered a copy of the lien document from my local recording office, I noticed that it was a self-releasing lien, ie if the IRS doesn't refile by a certain date, the lien self-releases. The self-release date was 04/2007. I contacted the IRS and they issued me a Certificate of Release of Federal Tax Lien to file with my local recording office, which I did in 01/2009.

 

I filed a dispute with all 3 CRAs, saying the lien has been released.  Thusfar, I've heard back from EQ and EX.  Both now show the tax lien as released but the released/resolved date is 01/2009, so I've opened new disputes with both to have the date changed to 04/2007.

 

Still waiting to hear back from TU.

 

Regarding the date that tax liens fall off the report, I got the following info off the EX site:

 


Unpaid tax liens remain on a credit report for 15 years. That’s longer than any other item in a credit report. Paid tax liens remain seven years from the date they are paid.

 

I guess the message from Uncle Sam is, “Don’t mess with the tax man!”

 

The silver lining is that once paid, the significance of the lien begins to decrease. The longer in the past the lien was paid, the less impact it will have on your ability to get credit, and in time it will be deleted.


Reference: Tax liens and your credit report  (Experian site)

 


Current Score 08/20/2015 - TU 794 (Discover TU FICO® Score 8)
Current Score 07/28/2015 - EQ 786 (Citi EQ FICO® Bankcard Score 8)
GOAL - 800! - App free since 05/18/2015
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.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on actual applicant approvals and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

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.