Is good credit possible after a defaulted student loan?
Saturday, November 28th, 2009 at
7:40 pm
Danie asked:
My credit score was in the low 400′s after my student loan went into default. I am still confused how the other loans with the same company were in defferment but these were left off. I was just told too bad. My question is now that I have consolidated the defaulted loan I have also gotten some credit repair and a lot of derrogatory things paid off and deleted. Does consolidating the student loan in itself improve your credit score?
My credit score was in the low 400′s after my student loan went into default. I am still confused how the other loans with the same company were in defferment but these were left off. I was just told too bad. My question is now that I have consolidated the defaulted loan I have also gotten some credit repair and a lot of derrogatory things paid off and deleted. Does consolidating the student loan in itself improve your credit score?
Tagged with: Credit Score • Defaulted Loan • Loan Default
Filed under: Student Loans
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Student loan consolidation can be beneficial to students’ credit rating, but it’s important to note that not all federal student loan consolidation companies report their loans to all credit bureaus
7 tips to improve credit score
1. Pay your bills on time. Your payment history is a major factor (35% of your FICO score) in determining your credit score. If you pay your bills late, or had an account referred to collections, your credit score will take a major hit.
2. Sign up for online banking and make sure your regular recurring bills are paid automatically. This way you will not forget a payment that will wind up reducing your credit score.
3. Increase your credit limit. Another large factor is the amount of your debt in relation to your credit limit. If you have a card with a $10,000 credit limit and your balance is $9,000, this will not help to improve your score. To make the debt/credit limit ratio look better, you can try to call your credit card company and request an increase in your credit limit. Don’t use the extra credit though! That defeats the whole purpose and puts you further in debt!
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it’s a government loan you have to pay off. there’s no way around it. it depends on what types of loans you have. subsidized vrs. unsubsidized, defferment vrs. not in defferment. get all the info associated with your loan and make some calls. see what’s going on and how you can fix it. i fixed one of mine that i didn’t pay on for a while by calling them up, telling them to put the overdue balance (and fees) back into the loan and made a payment to start fresh again. student loan companies will work with you and can make the payments into something you can afford. just make sure you don’t let the interest pile up. that will keep you paying it off forever.
You can improve your credit score with knowledge, some time, some effort and not a lot of money. Start by learning the credit laws in the United States. The big one that will help you is that credititems. If they can’t prove it’s correct or don’t respond in time, the items must be removed.