Sep
12
2013

Time it will take to recover after paying a tax lien

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Dear Experian,

I am currently paying off a state tax lien. After the tax lien has been paid in full, how long will it take for my credit to be restored to good standing?

- APM

 

Dear APM,

Tax liens are public records of unpaid or delinquent taxes. They are essentially a debt you owe to the government. Although a paid tax lien is better than an unpaid lien, the lien itself is considered a potentially negative item on your report.

The tax lien will be updated to show it has been released after it is paid in full. The lien will remain on your credit report for seven years from the date it is paid. Unpaid tax liens remain for 10 years from the date they are filed.

Once updated by the court to show it has been released, the lien should be updated automatically in your credit report. You may also mail documentation showing the lien release directly to Experian using the address provided with your personal credit report. Please be sure to include your full name, address, Social Security number and credit report number.

Thanks for asking.

The “Ask Experian” team

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