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How does a tax lien impact your credit report and score? You'll find the answers here. This
is Credit in 60 Seconds.
A tax lien is the federal or state government's legal claim against your property when you
fail to pay a tax debt. And tax liens are public record, so they can
be reported to the credit reporting agencies and show up on your credit report. A tax lien
can have a serious impact on your report because it shows lenders that you have failed to pay
a financial obligation.
Although a paid tax lien is better than an unpaid tax lien, both are potentially negative
and could impact your chances of getting credit in the future.
A paid tax lien will stay on your report for seven years from the day it's paid. Unpaid
tax liens can show up for 10 years on your Experian Credit Report.
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