I am rebuilding my credit from neglect in my 20's. Being 35 now, I have three years to go before a recently discovered tax lien of $1400 is removed from my credit. My old chapter 7 bankruptcy goes away at the same time: 3 years from now. My fico is 650. I have 16500 total credit card space with about 30% utilization on a 0% card. I have a bunch of old delinquencies and bad marks going away this year. Haven't had a late pay in 5 or 6 years I think. I just discovered this $1400 tax lien. I don't have the money to pay it right now. If I roll it over to my 0% card and pay it over time instead of waiting for it to expire will it help or hurt my credit? I still have chap 7 on there till 2010. My question is should I just wait it out or roll it over? Thanks very much!
The lein will stay on your report whether you pay it or not and even paying it will not raise your FICO. Moral obligation aside. I would not roll 1400.00 to a credit card for a lien. The fact that you are considering doing this says you cannot afford to pay it off at this time