A tax lien is a lien forced by law on assets to ensure the payment of taxes. A tax lien might be forced for aberrant taxes due on real or personal property, or because of failure to shell out income taxes or any other additional taxes. A tax lien on a credit card definitely affects the credit score and the credit report in a negative manner.
Credit reports are crucial for borrowers as well as lenders; for lenders, credit reports provide an idea of the applicant’s creditworthiness. If you have applied for any type of loan then the lender is sure to check your credit report before releasing any finances. The lender gets hold of these reports from any of the three major credit reporting agencies; Equifax, TransUnion, or Experian. These agencies record almost all the financial transactions of the applicant by getting the relevant data from other lenders who have done business with the applicant in the past.
TransUnion is one of the three major Credit Reporting Agencies in the United States of America which also operates internationally. It is the third largest consumer reporting agency in the United States and was created in 1968 by the United Tank Car Company. It purchased the credit bureau of Cook County in 1969 and started operating as a credit reporting agency. It now operates in more than twenty five countries and in five continents across the world.
A credit bureau has a pivotal role to play as far as credit reports and credit ratings are concerned. The three biggest credit bureaus in the United States are Equifax, TransUnion, and Experian. These bureaus collect information about a person’s previous financial dealing from landlords, lenders, banks, and other financial institutions. Numerous other smaller agencies are also affiliated with these bureaus and give them monthly reports about your financial dealings with lenders.
