Do taxes affect your credit score?

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According to a survey recently published by Lexington Law Firm, 23 percent of Americans reported they rely on their tax refund to pay bills, so a delay would affect their financial stability.

But not everyone knows that taxes can impact their credit scores — not just their ability to pay down debts or monthly bills, especially if an individual owes money to the Internal Revenue Service.

It’s extremely important to work with the IRS to pay off the remaining taxes. The consequences of not working diligently with the IRS to reconcile the debt can impact a person’s credit score.

How?

The IRS can file a tax lien in court, giving the federal government actual assets. According to IRS.gov, “a federal tax lien is the government’s legal claim against your property when you neglect or fail to pay a tax debt.”

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How Divorce Impacts Your Credit

So half of America’s been divorced. We get to see that statistic too often in the newspapers and for half of us, we’ve gotten to see it in our lives. Unfortunately the pain doesn’t start or stop when the judge issues the divorce decree. So if you’ve ever been divorced, you know exactly what I’m talking about. The ripples from that flow out in every direction in so many parts of your life and frankly it’s almost crazy to talk about credit reports in this context although that’s what we’re here to talk about.

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Personal Finance Fixes: Three Online Tools

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When it comes to financial strength, credit repair is only part of the equation. Maintaining a positive income, budget, savings account and investment portfolio is essential. Without these tools, the path to credit damage is swift and unavoidable. If you’re looking for organization and clarity, look no further than the following online sources. They will help you establish healthy money management skills.

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Is Your Employer in Financial Trouble?

 

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Employment rates are holding steady according to U.S. Secretary of Labor Tom Perez. On April 3, Mr. Perez cited a recent jobs report that boasted 61 consecutive months of private sector growth. Although 129,000 jobs were created in March, many are still struggling with the threat of layoffs. Read on to learn the warning signs of a financially-unstable employer. Early detection will help you prepare and protect your savings.

So, is your employer in trouble? Red flag behavior includes:

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How to Build First-Time Credit

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It’s an unfair association, but “bad credit” and “no credit” are often lumped into the same category. Whether you’re a young adult or simply new to the lending world, building credit is an important process. A strong score will save you money on insurance premiums and interest rates, open the door to new opportunities and even pad your bank account. Read on to learn the basics of building first-time credit. It’s easier than you think.

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