Dealing with tax problems is stressful enough. But it can be downright maddening to discover that your credit has been damaged over a tax bill you had nothing to do with. A Credit.com blog reader asked:
My wife’s credit report shows a tax lien from my taxes from before we were married. Is that legal?
Probably not, says Dan Pilla, the founder of TaxHelpOnline.com. In most cases, if the tax lien was filed against the husband, not the wife, then his wife’s “credit report should not show the lien,” he says. If they live in a community property state, though, the answer may be different. More on that in a moment.
You may have already started receiving tax forms in the mail. You know what I’m talking about — the envelopes are marked in big block letters, “IMPORTANT TAX DOCUMENTS ENCLOSED.”
Sometimes getting ahead feels more like a herd of turtles than a rabbit. That’s especially true when it comes to credit scores.
Check out this reader question, and see if you can relate.
A few weeks ago, the IRS said it expects to be unable to answer half of taxpayer calls this year, but that’s only the beginning of what promises to be a messy tax season. In an email obtained by ABC News and confirmed by the IRS to Credit.com, IRS Commissioner John A. Koskinen delved into the unpleasant details of how budget cuts will affect IRS operations and taxpayers.
There are many good reasons to never pay your credit card bill late, but are there any good reasons to pay it early? It would seem to go against all common sense to send in a payment well before the due date, but the more you understand about how credit cards and credit reports work, it can be smart idea under some circumstances.
Here are four reasons why you might consider paying your credit card early.
Everyone hates rejection. And while a personal rejection stings, having a credit card application rejected can be even worse. Applicants may feel that a card issuer has made a judgment on their entire credit history and found them lacking. In fact, even people with high credit scores can be declined and wonder why.
Thankfully, here are six techniques that you can use to maximize your chances of being approved for the credit cards you want.
Being late on one bill can’t hurt your credit score that much, right? Wrong! Not only can a single, small late payment slice 100 points off your credit score, it can take three years to recover from the damage.
If you’re like me and you spend the beginning of the year setting up all those appointments and updating lists of tasks that have to be done on an annual basis (like checkups, turning the mattress and replacing the batteries in smoke detectors), I have another item to add to your list: a credit checkup.
The start of a new year is a great time to check your credit reports and set yourself up for a worry-free year of healthy credit, or to set up a plan to reach specific credit goals. Follow the steps below to perform your annual credit checkup. (I promise it won’t be as uncomfortable as your dental exam!)
Tens of millions of Americans don’t have credit scores, meaning they have little or no access to things like credit cards, auto loans, personal loans and mortgages. People with poor credit are similarly limited, and there’s a good reason for that: Without a good credit history, you’ll have a hard time finding someone who will extend you credit. Sure, lenders consider other factors when evaluating potential borrowers, but a decent credit score gets your foot in the door.
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