Eliminate Credit Debt

Once a tax lien has been assessed, it can remain on your credit report for as long as fifteen years, which is longer than any other item in your credit file. This is true if the lien is not paid. However, even if you pay the tax lien, it can remain on your credit report for a full seven years after it has been paid. The more time that goes by after a tax lien has been paid, the less it will negatively affect your credit. Once seven years have passed after you pay the taxes, it will disappear completely from your credit report.

Having a tax lien on your credit report can seriously impede your ability to get credit. In addition, if a lien has been placed against your property then you will have to jump through hoops before you will be able to sell it. The best course of action, of course, is to do everything possible to avoid having a tax lien placed against your property in the first place.

While everyone should make it a practice to obtain a free copy of their credit report at least once each year, this is just another reason why it makes good sense to check your credit report regularly. Sometimes, individuals who pay their taxes after having a tax lien still see the lien as being reported unpaid on their credit reports. When this happens, you will have to file a dispute and it may take some time, but you can have the lien marked as paid. If seven years haven’t passed since you have paid the lien then you will still have to put up with it showing up on your credit report but it does make an important difference when it is marked paid so be sure and check this out if you have ever had a tax lien assessed.