Liens have a long-lasting effect on your credit score, but can they be removed? Yes, you can dispute errors on your credit report yourself (but it's often time-consuming and confusing) An easier way? Enlist the help of an experienced credit repair expert like Credit Glory.
What is a notice of lien?
A lien is a claim a creditor can place on collateral you used for a loan if you fail to make payments. Creditors often file liens to recoup losses for loans and payments and are filed in court. Common types of liens include:
- Mechanic's liens
- Real estate liens
- Judgment liens
- Tax liens
How do liens affect my credit score?
While a lien itself may not show up on your credit report, they do affect your credit score. Payment history makes up 35% of your credit score, and having a lien filed against you potentially means:
- Additional debt
- Even bankruptcy
These can drop your score by up to 100 points! The worst part? They stay on your credit report for up to 7 years.
What does that mean for you? Liens have a serious effect on your credit score and financial well being. Not only does it make it more difficult to apply for future loans or but it can also hurt your chances of buying a new home.
Can liens be removed from your credit report?
As of 2020, tax liens and judgments won't appear on your credit report, but debts, foreclosures, and bankruptcies still do. While you can't remove verified negative marks on your credit report, you still have options for protecting your credit.
- Negotiate a settlement - If a lien results in a debt, you may be able to negotiate a settlement with the collection agency. Agreeing to pay a partial settlement or the debt in full may get the mark removed, but be sure to get everything in writing first.
- Dispute errors on your credit report - If a debt, foreclosure, or bankruptcy shows up on your credit report as an error, you have the right to dispute it. Disputing unverified debt yourself means contacting credit bureaus, which is a lengthy process.
- Partner with a credit repair expert - Checking your credit report for errors and disputing them yourself is challenging. Working with a credit repair expert (like Credit Glory) is an easier alternative to fixing your credit yourself.
Repair your credit yourself or w/professional help?
Liens have a long-lasting effect on your credit. Luckily, you have options. You can check your credit report for errors and dispute them yourself — but this is hard (& time-consuming). The simplest way to dispute errors (& boost your score)? Working with a credit repair expert (like Credit Glory) is easier.
Start building your credit with help from Credit Glory
Disputing negative items on your credit report is hard work! It takes a lot of time, effort, organization, and follow up. The good news? Our team of credit repair professionals is here to simplify everything! Let your dedicated credit repair expert relieve you of the stress, hassle, and time needed to fight your inaccuracies and boost your credit score (FAST!)
Credit Glory is a credit repair company that empowers consumers with the opportunity and knowledge to reach their financial dreams in 2021 and beyond. Call us at (855) 938-3044 or set up a consultation to get started, today!