As many people here may know, student loan default can nuke a credit score. I have had numerous accounts in collections, my first credit card was charged off. I was in default on my student loans, four accounts, for eleven years. During that period it was impossible for me to get any credit whatsoever. I had an automobile repossed and the loan charged off. A year ago, my CK scores averaged 540. At the end of June Captial One Auto Finance approxed me for a auto loan range of 1.99% - % 7.2%, for a maximum of $14,466. The score Capital One Autonaviator used was VantageScore: 720. I was approved for a Discover it with a $500 limit. Discover reported that my FICO score as 710. Lastly, Captial One also approved me for a Quicksilver 1.5% cashback card with a $300 limit. My income is less than $20K per year. My CK scores averaged 670 when I applied for the above. So how did I do this? Continue reading if you want to know more.
Six months ago I successfully completed the United States Department of Education Loan Rehabilitation program. It required me to negotiate with the collections agency appointed by the Dept. of Ed to get their money back. Allied Interstate negotiated a $30 a month repayment program. They stipulated that if I made 10 consecutive ontime payments, then my defaulted student loans would be rehabilitated into good standing. I made all of my payments on time, and now instead of having the defaulted student loans from over a decade ago on my credit report as a derogatory, they are now 4 accounts, which are over 14 years old in good standing. The only other account on my credit report was for child support. Besides a couple of late payments, on a closed account -a new account opened up when terms of support changed- there was nothing else on my credit.
After the above mentioned inquires for successfully obtained credit, my CK scores are now TU 668 and EQ 666. I was wondering if the people on this forum had questions about rehabilitating student loans, and also if anybody had anyexperiencing with using CD secured personal lines of credit? I would like to go from just about average credit now, to stellar credit. Thankfully, I have been given a rare second chance.
