Do taxes affect your credit score?

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Ever wondered how taxes affect your credit score? If you've paid your taxes this year, here's the answer.

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Tax bills do not directly affect your credit score. However, how you pay your taxes and failure to pay can hurt it.

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If you've used credit to pay your taxes or failed to pay your taxes in full, then it can affect your credit indirectly.

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Paying by credit card can be convenient, but you'll end up paying interest on your card's high interest rate.

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If you use a personal loan to pay your taxes, you need to plan in advance. Make payments on time to avoid pitfalls.

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When you pay your credit card balance in full and on time, it helps improve and boost your credit score.

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Using a personal loan also helps add to the credit mix and monthly payments help your credit score grow.

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The IRS also offers installment agreements. They are not considered loans and don't affect your credit score.

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Remember while there is no direct bearing on your score, using credit to cover tax payments may affect it indirectly.

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