How Much Will My Score Go Up If I Pay Off A Tax Lien?
I was wondering..my FICO was a 585 when I checked last week..I owe the IRS money and I have the cash to pay them off, and Im now wondering how much my fico score will go up if I do..any thoughts?
At the most 20 to 25 points.
thanks for the quick response...thats about what I thought..doing that and paying down these credit cards over the next six months hopefully will have me mid the low-mid 600's..
If you want to pop it up a little more, close your credit card accounts. You can do this while you still have a balance on them. Your payments will be the same, but your credit report will reflect, "account closed by debtor." Since it is no longer open credit (meaning you can no longer charge it up higher), it will increase your credit score. Do it also with any retail cards, sears, jcpenny, etc.
My wife's score jumped 50 pts when she did that. She had 4 open accounts and closed them all.
Now, they'll try to get you to keep the card by offering you better interest rate... Be vigilant! Always keep your load light.
Just my opinion.
Ronnie
It will not affect your score much at all, if you pay the lien off. If you want to see your score go up, you should pay down the credit card debts. When your balance get down lower than 50% of credit limit, you should see your score goes up may be by 50 points or more.