topic Tax Lien PIF - Removal? Plus Others in Rebuilding Your Credit

Tax Lien PIF - Removal? Plus Others

Anonymous — Mon, 02 Jan 2012 22:21:12 GMT

I have a tiny past due tax lien that was PIF in October. I tried searching a little but couldn't find anyway to get it removed. I don't even think it is notated as PIF on my report I pulled today.

Also, I have about $450 on my report for medical bills. I CAN PIF but I want those off of my report. Would a PFD even work since they are mine? Or should I pay and try GW later.

I'm 21 and don't have much history. I can't get approved for anything except for secured credit cards, so I am just trying to get whatever's bad on my report fixed before I start anything else.

Just as a side question, would getting a small personal loan to pay these off be better? I could then get some credit worthiness from making monthly payments.

Sorry for all the questions, I just can't get much for my apartment without much credit.

Thanks!!

Re: Tax Lien PIF - Removal? Plus Others

RobertEG — Mon, 02 Jan 2012 22:54:28 GMT

Have you contacted the party who placed the lien and requested CR removal based on satisfaction of the debt?

Re: Tax Lien PIF - Removal? Plus Others

Anonymous — Tue, 03 Jan 2012 00:03:13 GMT

See, I didn't know they could that. I figured it was too simple. I will try tomorrow and report what happens. Thanks!

Any help for the others though?

Re: Tax Lien PIF - Removal? Plus Others

RobertEG — Tue, 03 Jan 2012 00:16:58 GMT

It is difficult to give firm advice on how to PFD, since acceptance is ultimately the decision of the party who reported it to the CRA. It is a form of good-will request, with an incentive of $ as a kicker. You can always offer a PFD. It is a private negotiation, and you can request whatever you want.

If a debt is still within SOL, the party can use legal action to attempt full collection without any need to grant CR deletion. So it is advisable to first know if the debt is still within SOL. If it is outside SOL, that will most likely improve your chances, and remove peril of legal action as their response. Paying and then asking for GW removes any threat of legal action, but also removes their incentive to accept.

I personally would not normally secure new debt to pay old debt. However, if you can get a low interest loan to pay off higher interest debt, it might be financially beneficial.

Added to that is the consideration that, if you dont currently have any installment accounts, a loan would improve your credit mix, provided the creditor reports to the CRA.

So before taking that route, I would be sure that any personal loan will be reported to the CRAs.

Re: Tax Lien PIF - Removal? Plus Others

Anonymous — Tue, 03 Jan 2012 00:29:31 GMT

Yeah, definitely a good point. They are still within the SOL so will probably try to just pay and GW it. But if it is in collections, paying shouldn't improve anything really (unless a lender requires it).

I might just old off on that one for now.

And currently, I don't have any installment accounts, so I am thinking that might be a way to get something going if I decide to pay them off here soon. I might just get one to pay normal bills and pay on that instead. I just need to get something started since I am sitting at a EX 517 (which is awful...).

Thanks for all the help!