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Sherri234

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Why are released liens considered "negative" by credit companies?
My credit score is low and my report shows 4 negative items about liens, but 2 of them show that the others were released. Transunion said I had 4 negative items, including the 2 releases - why do they consider releases negative as it is a good thing?

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Liens are derogatory remarks on any credit report and will remain a negative until they fall off your credit history which is usually 7 years after the lien is released.  That topic is covered in the very educational articles on this site.

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No, the released/paid liens/collection in themselves are good thing, however it makes little to no difference to "credit scores". The creditors didn't get paid as promised, even when they finally do get paid sometime later? The fact they have to take extra steps like go thru the process of file liens just to recoup their money, it showed how risky their investments were, so by kept your scores low even after its paid and any "paid" derogatory accounts remain on your report as derogatory, It more or less serves as warning to any potential creditors of the risk. Unfortunately, when comes to credit reports/scores? you have to look from creditors' perspective and not from consumers side.

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