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Can You Get a Car Loan with a Tax Lien?

Consumers have written in to ask us:  can I get a car loan with a tax lien?

The answer is YES, you can, whether the lien is satisfied or not. Having said that, there are always provisos, so here they are.

  • What is your credit score? Many lenders consider your credit to be subprime if your auto enhanced FICO score is 610 or less. While you will not see your auto enhanced score unless you are denied a loan, you can get a best guess based on your readily available scores from the major reporting agencies. If all of those scores are over 660, your FICO auto enhanced score should be over 610.
  • Are all of your other payments up to date? If the tax lien is the only negative item on your report, you should have very little trouble getting the car loan that you need. On the other hand, if the tax lien is just one hit among a mixed bag of others, then you are going to have a great deal of trouble.
  • What is your down payment? The amount you put down on a car can often sway a lender in your favor. If your score is borderline, but you offer a down payment over 15 percent, you will probably be approved.

Ready to find out if you meet these criteria? Go here to apply online for financing. We’ll work to match you to a lender or dealer in our network who’s willing to fund your loan, despite any current tax liens. Keep in mind, you may have to pay a higher interest rate because of the lien. Even if the lien has been satisfied, you may want to pull your credit reports. From time to time, the lien may not accurately reflect paid in full. That is easy enough to resolve if you have kept all paperwork related to the lien.

About the Author

The author has many years of experience in automotive finance and insurance. However, each consumer's situation is unique. It is best to contact a finance specialist for further assistance.
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