Deliquent history

[Anonymous]

Hello. I have a student loan that I was being irresponsible with back in 2012 and I was not making payments on it for 7 months. After receiving my new credit card in the mail today I see that this is effecting my credit score. Is there anything I can do about this? Will it eventually fall off or have less of an impact? My credit score through what I believe is Transunion (What chase pulled) is 728.

Any advice is appreciated.

[Anonymous]

Is the loan paid off entirely now or at least paid on time for the past 5 years?  If so, the lates will disappear after they're 7 years old or so.

[Anonymous]

It is paid off.

[Anonymous]

Actually it says "Closed-Transferred" under account status. It shows a 0 balance though. It says current also. What so you think that means?

[Anonymous]

I wouldn't sweat it at all.  You could try goodwill letters but student loan companies aren't friendly -- some don't really act human when it comes to debt because of they control the cards and the table.  Since it's already 5 years, your scores aren't getting trashed as badly as if it was recent.  2 more years they'll drop off.

[Anonymous]

Okay thanks. Appreciate the advice very much.

[Anonymous]

If the OP didn't pay for 7 months, I'd think the worst reported status is 120+ days late. OP, can you verify the worst reported severity of your late payments? If it is a major delinquency, without question even at 5 years it's still impacting his credit score nearly the full amount.

[Anonymous]

Ok. So I was late on 7 payments. Two of them were 90- 119 days late. The other five were 120-149 days late. After that I started paying on my account and eventually paid it off.

[Anonymous]

It does say my worst payment status was 120-149 days late.

[Anonymous]

Oh yeah, I misread your initial post.  Anything 90D or later is considered a "major derogatory" and hurts the entire 7 years.  It's similar to what a collection or public record would do.

Thankfully you're only a few years out from that disappearing and your scores will jump massively.

One thing I have noticed is that some banks seem to be relatively forgiving when it comes to student loan debt that has been rehabbed and paid off.  I know quite a few people who have nothing negative on their credit reports but old student loan debt, and they all get prime credit cards even with the major hit from years ago.  Maybe there are a lot of people with old delinquent accounts that are rehabbed or paid in full now?