Does a Tax Lien Affect My Credit Score?
The Australian Taxation Office has the right to place liens on the assets of individuals who have outstanding tax liabilities. A tax lien is a legal action. It puts a public notice that goes on the record. The lien ensures that the individual will repay the debt that they owe. For example, if the ATO places a tax lien on your property, the lien shows up in the home’s records when you attempt to sell it.
It’s normal to wonder if a tax lien impacts your credit score. According to the ATO, it does not. However, when they hand the debt over to a collections agency, that impacts your credit report. Thus, it’s important to monitor the agency that has the debt. Small businesses have the most trouble paying their tax liabilities. As a small business owner, it’s important to keep an eye on the liability before the payment deadline arrives.
Nonetheless, individuals seeking a mortgage or a loan for their tax liability can contact Mortgage House. Our loan specialists can explore solutions with you in both cases. It’s possible to become a homeowner despite the debt. Mortgage House clients enjoy access to additional financial products such as debt consolidation loans. We also offer online tools such as the car loan calculator.
Tax Lien and Credit Score Conclusion
A tax lien in Australia does not impact the individual’s credit score. It does have other ramifications. Individuals facing tax issues can still apply for mortgages. Our Mortgage House loan specialists can work within your circumstances. Contact our team today.