How to Fix My Credit Score After a Property Lien

Ignoring your tax debt or another bill can result in a property lien, and having a lien on your credit report can cause significant damage to your credit score. As your score drops after a lien, qualifying for a loan or credit card can prove difficult. But if a lien blemishes your credit history, you can fix your credit score.

Instructions

1

Resolve the lien. Paying off a tax bill can help repair your credit score. Talk to the attorney handling your case, and make arrangements to pay the full balance or establish an installment plan to satisfy the outstanding tax bill.

2

Get the lien off your credit report. After making your final tax payment, consult the lawyer again, or speak with the reporting creditor, and ask to have the lien lifted from your credit report. Liens can stay on your report for seven years, even if you pay the debt. Creditors determine whether to delete a paid lien early.

3

Check your report. If the creditor agrees to remove the lien, give the company a few months to act, and then pull your own report to make sure the creditor updated your report. Removing a paid lien can help add points to your score. You can obtain one free copy of each of your three credit reports each year from Annual Credit Report.

4

Establish better payment habits. If the creditor isn't cooperative or refuses to delete the lien, take steps to improve your score with on-time payments to your creditors. Pay bills early -- before the due date or by the due date -- to maintain a good payment history.

5

Help fix a low credit score by paying off your consumer debts. The less debt you carry, the better your personal credit rating. Give your score a fast boost by paying off credit card debt.