@Anonymous wrote:
@jamie123 wrote:
I have a few questions...
1. Would the appearance of a released tax lien lower my score even though the underlying tax lien was never reported?
2. Would the appearance of a released tax lien on my EQ report here at MyFICO trigger a rescoring? I know the other FAKO sites never took these tax liens into account for scoring purposes but I do know it matters with the Big 3. The only change at MyFICO today would be the appearance of this released tax lien.
Once these liens are satisfied and I know how it turns out, I will post the whole story on a thread.
We should probably have an entirely new thread on tax liens. I could certainly participate
And just because you have them, doesn't mean you did anything wrong, it might just mean that you and the tax authorities don't agree on something. And BTW, even if they later admit they are wrong, they only have to release the lien, not withdraw it! Sorry, I could get passionate about the subject.
1. As you have more than one, my experience is that after the first one, the additional liens make little to no difference in score on or off.
2. The appearance of a released lien on your EQ or EX report will trigger an alert, TU did no trigger an alert. It did not trigger a rescoring for me on any of the three. You have to watch EQ as they will update the dates and may add to the time that it takes to fall off if you don't push them on the subject.
Oh I'll definitely be pushing them on that subject! All of them! All off now!
@Anonymous wrote:
@jamie123 wrote:
I have a few questions...
1. Would the appearance of a released tax lien lower my score even though the underlying tax lien was never reported?
2. Would the appearance of a released tax lien on my EQ report here at MyFICO trigger a rescoring? I know the other FAKO sites never took these tax liens into account for scoring purposes but I do know it matters with the Big 3. The only change at MyFICO today would be the appearance of this released tax lien.
Once these liens are satisfied and I know how it turns out, I will post the whole story on a thread.
We should probably have an entirely new thread on tax liens. I could certainly participate
And just because you have them, doesn't mean you did anything wrong, it might just mean that you and the tax authorities don't agree on something. And BTW, even if they later admit they are wrong, they only have to release the lien, not withdraw it! Sorry, I could get passionate about the subject.
1. As you have more than one, my experience is that after the first one, the additional liens make little to no difference in score on or off.
2. The appearance of a released lien on your EQ or EX report will trigger an alert, TU did no trigger an alert. It did not trigger a rescoring for me on any of the three. You have to watch EQ as they will update the dates and may add to the time that it takes to fall off if you don't push them on the subject.
Actually it's severe diminishing returns but I got an explicit datapoint on the addition of a recent lien, which was subsequently released days later but didn't get removed for months because I was lazy (I'd already paid it before IRS filed the lien), and one such example of FICO 8 punishing more recent issues more than old ones:
Oh lame, they aren't giving me any of my old alerts beyond roughly 2 years ago.
Anyway in rough numbers, EQ FICO 8 dropped from 700 to 660, and EQ Beacon 5.0 moved from 660 to 656 with a brand spanking new tax lien; explicitly this was going from 1 tax lien to 2 on that report. EQ had already dropped my albatross early, I would have to see if I could dig it out of the Wally TU interface for a non-EQ score where I went from 2->3 tax liens.
@Anonymous: yes EQ monitoring out of the 3B suite will at least report the new lien, not sure about TU/EX as I didn't have those at the time of my last dance with the IRS, and you will get dinged even for a released tax lien.
@jamie123 wrote:A bit of an update...
I was testing if the break point for extra points on installment loan was 66% remaining balance. It appears to me that my scores have stayed the same with 60.8% remaining aggregate balance. My MyFICO EQ has held steady at 705 and my CK scores have also held steady at 773.
My plan is to pay both (One 2 year and one 4 year) share secured installment loans to just under 50% today to see if that is the break point for extra points. I won't find out if it changes my scores until the first week in August when they report to the CRAs. I don't want to get too close to the loan pay off point at the moment in case it takes longer than anticipated to have the tax liens removed from my EQ and TU reports. I don't want to end up in a situation where the loans get paid off before I app for a mortgage.
You can pretty up the loans within a month, you should get some idea how long it'll take to resolve them and FWIW pushing the payments so far out, you should be in the clear unless you go for years with how Alliant and SDFCU work (Alliant confirmed by both of us, SDFCU from you). I really wouldn't worry about it honestly.
We got a different data point from another user that suggests the initial breakpoint seems to be at 80%, so yeah that original statement by me was absolutely sloppy haha. Now I'm hoping for the breakpoint under that: btw did I mention I adore CK's historical report feature? 
I should've done this before, my apologies, **bleep**ing stupid really not taking into account the tracked drops since they were nearly identical to my gains during this testing at ~18 and ~5 points respectively. So yeah, sub 50 would be an excellent next test Jamie, then see how how many you can get before mortgage time but looks like 19% might be another good number, and breakpoint somewhere in between.
I really hope my reported mortgage falls outside of this calculation.
| Loan | Current | Original | Utilization |
| Auto Loan Close | |||
| DCU Auto | 300 | 16070 | 1.87 |
| Alliant | 477 | 500 | 95.4 |
| USAA #1 | 363 | 2500 | 14.52 |
| USAA #2 | 2388 | 2500 | 95.52 |
| Total Before | 3528 | 21570 | 16.36 |
| Total After | 3228 | 5500 | 58.69 |
| USAA #1 Close | |||
| Alliant | 454 | 500 | 90.8 |
| USAA #1 | 73 | 2500 | 2.92 |
| USAA #2 | 2232 | 2500 | 89.28 |
| Total Before | 2759 | 5500 | 50.16 |
| Total After | 2686 | 3000 | 89.53 |
@jamie123 wrote:I paid down each of the 2 share secured loans to just under 50% this morning so we should see something with the August reporting. They usually end up on my reports at the end of the first week of the month.
At 6PM EST I received a MyFICO e-mail alert telling me my score changed because of a public record. I logged on to find the released tax lien and my EQ score dropped 1 point from 705 to 704. They had almost all the information this time.
I only have MyFICO Scorewatch so can only track EQ for sure. I have the Walmart, Cap1 and Discover TU scores but those only happen at the beginning of a month. I am completely blind as to my EX score unless I pull a 3 bureau report. I wonder what the released tax lien did to my clean EX report?
I think I might hold off on pulling the 3 bureau report until these tax liens shake out a bit or I see movement from the loan pay downs. Unfortunately there may be a couple more tax lien releases during my removal process. I really hope not. Well, there is a bright spot here. I didn't pay anything to the State to have this $9K lien released!
What date does the released tax lien show up as? If it was brand new I would've expected a bigger drop on EQ FICO 8 regardless if you had one on your reports prior: my EQ Beacon 5 didn't move much but my EQ Beacon 9 got dropped to a near identical level as my Beacon 5 at the time when I had a brand spanking new lien filed by the IRS. Credit Karma has been updating my file whenever I get a change on my report in addition to the once weekly pull: maybe check there for data access to your lien?
Yeah EX still sucks: short of my accepting one of the Slate offers that Chase keeps shoving at me I'm sort of at a loss on how to get one otherwise for a freebie score. If I had the ability to take an inquiry hit when FBNO was offering that godlike card last month maybe... but mortgage >>>> credit cards.
Are all your liens State? What's the SOL or withdrawl process in your state if so? Sucks that they showed up as released when they weren't on there before, but admittedly had to sort any outstanding public records before mortgage commenced anyway.
@jamie123 wrote:
@Revelate wrote:
What date does the released tax lien show up as? If it was brand new I would've expected a bigger drop on EQ FICO 8 regardless if you had one on your reports prior: my EQ Beacon 5 didn't move much but my EQ Beacon 9 got dropped to a near identical level as my Beacon 5 at the time when I had a brand spanking new lien filed by the IRS. Credit Karma has been updating my file whenever I get a change on my report in addition to the once weekly pull: maybe check there for data access to your lien?
Yeah EX still sucks: short of my accepting one of the Slate offers that Chase keeps shoving at me I'm sort of at a loss on how to get one otherwise for a freebie score. If I had the ability to take an inquiry hit when FBNO was offering that godlike card last month maybe... but mortgage >>>> credit cards.
Are all your liens State? What's the SOL or withdrawl process in your state if so? Sucks that they showed up as released when they weren't on there before, but admittedly had to sort any outstanding public records before mortgage commenced anyway.
I have to hurry this because I have to get to work.
All reports show that the State tax lien was released 5/21/2015.
Yes, all my liens are from the State.
SOL on unpaid State tax liens in that State is 40 years. Yes, that is not a misprint, 40 years!
Not sure about the withdrawal process yet but I'm sure I will be finding out soon enough.
Oh wow. I hope you can get them withdrawn, what does it show for an added date?
California state tax liens suck; can't be withdrawn unless they were filed in error. Otherwise I'm just stuck waiting 7 years from payment. Admittedly it really hasn't limited me in my credit journey that much, but I wish my own state were a little more flexible, never even heard a good reason that the bill which would've made Cali follow current IRS practices never even was discussed after it made it out of committee. Oh well, typical politics, just ignore something long enough and either it goes away or explodes, and this one ain't likely to explode.
Getting back on track to the original reason of this thread: Find out the point at which you gain points by having a certain percentage of your installment loan paid off.
I pulled another 3 bureau report because a tax lien RELEASE showed up on my report. This will give us a good baseline when my installment loan pay downs end up on my reports next month.
While I was perusing the "Printable Version" of my report, I came across some interesting advise that I thought I should share here.
Take a look:
Here are my current scores after the tax lien release reported on EQ and TU. My EX report remains clean. There is also 2 CCs reporting to the CRAs on this report versus 1 CC on my last report.
Look here:
It's in the FICO reason codes which pretty much confirms it's a thing (probably should've dug there earlier rather than coming up with this on a lark).
The 39% is a red-herring same as Credit Karma's data mining, and it's pretty clear you can hit high achiever status even without installment loans so not sure one can read that as any sort of breakpoint. Least from my data the "spectcularly good!" point seems to be north of the 10% line, and both of our data less than 60%. 80/20 is my more refined guess from some people's reports, but if mortgage tanks my own ability to play with this, it will for you too.
Maybe SJ will get some good datapoints, looked like he was thinking about tacking on a new installment loan to an otherwise revolving only report.
