Credit Card Watch

How to Remove a Federal Tax Lien From Your Credit Report

Federal tax liens on your credit report can be very damaging to your credit scores. Unfortunately, paying off a federal tax lien will not get it removed from your credit report. Although it is definitely wise to pay it off, it can stay on your credit report, even after you pay it, for up to 7 years from the date you pay it.

To get a tax lien removed from your credit report, you must dispute it with the credit reporting agency (credit bureau) that is reporting it. There are several legal, honest ways to dispute information on your credit report and there’s a right way to do it and a wrong way to do it. Learning your rights under the Fair Credit Reporting Act is the first step to removing federal tax liens and repairing your credit.

Under the FCRA, you are able to dispute any items on your credit report that are questionable or unclear. Many times the credit reporting agencies report false or inaccurate information. In fact, over 70% of all credit reports contain errors on them. It’s important for you to go through your credit reports and learn how to find such errors. It’s even more important to make sure the credit bureaus report your information correctly.

Always remember that the credit bureaus are not government agencies and the reason for their existence is to make a profit. They profit from selling your information and it’s very clear that it’s not a top priority of theirs to report it correctly. Every consumer should take the time to learn their civil rights and get involved with what is being reported about them. In my opinion, t’s not only a right, but a responsibility.

Learn how Lexington Law helped raise my credit scores over 200 points and how to remove federal tax liens and other negatives from your credit report.