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How To Remove A Lien From Your Credit Report

How To Remove A Lien From Your Credit Report

A credit report is made up of a number of different aspects including payment history, available credit lines and a section for legal judgments or liens placed against you. All of this encompasses a credit history which is consolidated into your FICO credit score. The fewer black marks on a credit report, the better your credit score and the more credit you have available to you at better interest rates. Some parts only require focus such as making credit card payments on time and for the right amounts but sometimes mistakes happen. In certain circumstances you may need to remove a lien from your credit report and the following will tell you how to do just that.

First you need to verify that the lien exists on your credit report so contact one of the three major credit reporting bureaus and obtain your free annual credit report. Federal law requires Experian, Equifax and TransUnion to provide one free credit report every twelve months to consumers. Once you have gone to www.annualcreditreport.com and received a copy of your credit report, you can verify the lien exists, who reported it and use this information to try and have it removed. Of course this only applies if you have paid the debt in full and the reported lien is on your credit report in error or if you are looking to payoff the amount and have it removed.

Contact the organization which placed the lien and gather information about its status and whether or not it is paid in full or if there is an outstanding balance. Find out the pay off amount and make payment as soon as possible or schedule a payment plan to get up-to-date. Once there is a zero balance on the outstanding obligation, request a signed and notarized letter stating payment has been made in full and there is no longer an amount owed. At this point the company may be able to have the lien removed by updating your credit report with new information. If not there may be a few additional steps involved.

A lien placed against a person or their personal property is a legal document on file in the public records at a courthouse or judicial building. You may need to take your notarized letter and any receipts or statements to prove the amount has been paid in full to have the lien removed. You may need to provide documents to the courthouse to be filed so make copies of all important papers for your own records.

It takes a little while for information to be updated at the credit reporting agencies. After 60 days check your credit report to verify that the lien has been removed. You may be able to get another credit report for free from the other agencies if you haven't already obtained them, if not it may cost a nominal fee to get an additional copy. If the lien still appears on your credit report send a copy of the notarized letter to each of the credit reporting agencies at the time you file a report for incorrect or inaccurate information. Each of the agencies have a form available where customers can update their credit histories when necessary.

They are required by law to address challenges to a credit report in 30 days or less. At this point you will get a response that the information has been updated and the lien has been removed from your credit report or an explanation will be given why it has not. You may have to conduct these steps one or more times to finally get the lien removed and in the event that it does not happen, you may need legal counsel and have your lawyer contact the credit reporting agencies.

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