Can Paying My Taxes Affect My Credit Score?

credit score taxes

Tax time is a stressful time. Do you worry that tax issues will spill over to your credit reports and affect your credit score? The good news is that owing the IRS doesn’t affect your credit score, but how you choose to pay your taxes does.

The following are 4 ways that you can pay your tax bill and the implications to your credit score:


Personal Loan

If you apply for a loan to settle a large tax bill, the personal loan amount and your monthly payment record will be reflected in your credit reports. Note that the fact that you applied for a loan will count as an inquiry into your credit score and this will lower your credit score as well, but the drop is merely temporary. If you are considering applying for a personal loan, you should begin by assessing your credit strengths and weaknesses. You can minimize loan applications by first determining a lender’s minimum credit score requirements. Choose a lender with credit requirements that will match your credit score.


Credit CardCredit-cards

Having a large credit line is an advantage for most people. Charging a tax bill can be an option for credit card holders. If you’re already consuming a large amount of your available credit, there will be consequences to your credit score. Charging a credit that is nearing its limit can impact your credit utilization ratio. This measures about 30% of your overall credit score.



Paying a tax bill by IRS installment agreements will not affect your credit score in any way. This is because installment agreements are not reported to credit reporting agencies.


Tax Lien

If you owe a large amount of taxes or if you fail to resolve your debt quickly, the IRS will issue you a tax lien which will reflect on your credit reports.  Tax liens fall into the negative category, alongside collection accounts or bankruptcy. Unless you take the necessary steps to get this withdrawn, these can stay on your credit report for 7 years after the tax liability is resolved. If successful, your credit scores could rise significantly, provided that the rest of the information on your reports is positive. Fortunately, the IRS has made some changes to its tax lien policies, making it easier for taxpayers to get liens withdrawals after paying their tax bills.


When deliberating on how to pay your taxes, best give your credit score a look. Armed with this information, it will be easier to determine which payment method is best suited for your current financial situation. Whatever the case, it is always a good idea to continually monitor your credit.
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10 of the Top Financial Bloggers in 2013

Personal finance is a hot topic these days. Thanks in part to experts and educational leaders in the field, American consumers have started paying closer attention to the topic of money and budgeting. As a provider of ID theft services and affordable lifestyle insurance, we at Protect Your Bubble have a vested interest in keeping our clients educated about this topic. So in order to help you acquire the best financial advice and tips, we’ve compiled 10 influential personal finance blogs you should visit in order to assist you in reaching your financial goals.


So whether it’s for making money, saving money, insurance, retirement, investment or even learning how to protect YOUR bubble, here are a few bloggers that you can’t afford not to visit.


sarah gilbert1. Sarah Gilbert


Sarah is a freelance financial blogger and literary writer. You can find her work at, a thriving community of over 500,000 readers where she talks about improving finances. Sarah also has personal blog at urbanMamas as well as Cafe Mama where she blogs about being an army wife as well as cooking and parenting. Sarah’s blog posts are from personal experiences and yet they are informative and you will be hard-pressed not to finish the whole post. Her writing is quite engaging – and inspirational. More about Sarah here,


David E. Weliver2. David Weliver


David Weliver is a top blogger at Here he talks about how individuals in their 20’s can overcome the stress and pressure of being a student to earning a full time income and how to ensure you don’t go broke. His advice is sound and you might want to subscribe to his 7-day boot camp.


3. Kevin Duffey


Kevin Duffey has always been inclined towards being an entrepreneur, selling candies to his elementary classmates for more than double the profit, you will surely see his money advice to be quite keen. He is not interested in rehashed topics, so you can be sure that articles on are right on the dot and fresh.


Bill Schmick


4. Bill Schmick


Bill Schmick is a seasoned veteran when it comes to investments so if you are interested in investing, stocks trading and the likes then head on over to and read up on what Bill has to offer.




5. Jim Wang


Jim Wang hails from Carnegie University and is the founder and editor of He started the site around 5 years back with the hope of educating himself as well as others with regards to managing money and delving more deeply into personal finance. Since then the site has grown exponentially that it now has a few more writers who contribute great content to be enjoyed by its readers. The site has been mentioned in well-known publications like New York Times and Business Week.


6. Debra Muccio


Debra Muccio is the owner and editor at, a blog dedicated in educating the community on budgeting and cutting costs. These days the blog has extended its focus not only on budgeting tips but to shopping deals, family travels and social media events as well.


7. JLP


JLP is focused on personal finance and his blog is targeted on asset allocation, 401k, insurance, cash flow, IRA as well as financial planning and portfolio management. You’ll get a lot of tips with regards to improving your financial situation at


8. Melissa B


Melissa B is a hardworking contributor at She has around 109 articles there to her credit and her advice leaves no stone unturned. You will find her articles to be full of wit and charm and you’ll look forward to the next post. Aside from her contributions to Beating Broke, you can also find her on her own site at


9. Jessica Bishop


Jessica Bishop is the budget savvy bride at So for those brides-to-be out there, you will want to hop on to Jessica’s website for tips and tricks to help you get that dream wedding without drowning in debt the rest of your married life.

10. Mercedes Levy


Mercedes is a certified public accountant, so you know she is good with money. Her blog is filled with advice on how to live well within your means. The blog aims to help others live better lives by spending less and saving more. She reinforces frugal living tips with shrewd shopping techniques to help everyone become better spenders and savers.



In the end, your money is your money whether you save it, invest it or spend it, is all up to you but you might want to listen to some of their advice and you might just find yourself enjoying your life a little bit more just because you followed a tip or two.

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