California law gives contractors the right to file mechanic's liens for unpaid debt. That means they can seize part of your property to recover what is owed. While liens may not show up on your credit, they still hurt your score. Luckily, you can start rebuilding your credit after a lien. The easiest way is by disputing errors w/help from a pro like Credit Glory.
What to do if you're facing a mechanics lien in California
Under California law, contractors & suppliers can file mechanic's liens for unpaid work. What does that mean for you? A mechanic's lien gives creditors the right to seize property to recover outstanding debt. Having a lien on your property is stressful, so what does it mean for your credit?
How do liens affect my credit score?
While a lien itself may not show up on your credit report, it does 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, 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.
Why repair your credit w/Credit Glory vs DIY?
Removing inaccurate negative items helps improve your credit (& boost your score). DIY credit repair is a headache. Partnering w/Credit Glory is often a simpler alternative. Why?
- Easier - Making a mistake disputing DIY costs you. Credit Glory helps you build a strong case for disputing inaccurate collections (& boosting your score).
- Saves you money - An unsuccessful dispute leaves you stuck with debt (& poor credit). Credit Glory helps you boost your score — which means saving money on loans (& interest rates).
- Top-class customer support - Credit Glory has best-in-class customer service to answer questions and keep you updated. Credit Glory even offers an industry-leading 100% money-back guarantee (if no errors are removed in the first 90 days).
Bounce back from a lien w/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!
Get Your Negative Items Professionally Removed
In some cases, we recommend speaking with a Credit Repair professional to analyze your credit report. It's so much less stress, hassle, and time to let professionals identify the reasons for your score drop.
If you're looking for a reputable company to increase your credit score, we recommend Credit Glory. Call them on (833) 958-1271 or setup a consultation with them. They also happen to have incredible customer service.
Credit Glory is a credit repair company that helps everyday Americans remove inaccurate, incomplete, unverifiable, unauthorized, or fraudulent negative items from their credit report. Their primary goal is empowering consumers with the opportunity and knowledge to reach their financial dreams in 2020 and beyond.