I already posted this question in another section. Another user suggested that "Rebuilding Your Credit" would be a better place. Apologies if it looks like I am spamming...
Hello all,
Few months ago, I didn't know that I had to start making payments towards my student loans debt. As a result, my credit score went down by over 200 points, and my on-time payment percentage went down as well. I reached out to Navient to try to fix the issue. We were able to come up with a payment plan, and my credit went up by about 100 points. A couple of weeks ago, I made my 1st payment (I didn't pay off the loan), and told myself that things were getting better...
My credit score was updated a few hours ago. My credit score went down by 116 points (116!!!). My credit utilization is at 9% and I have 0 item in collections. I don't know what's happening nor if it will go away. All I know is that it's putting me in a terrible mood, and this whole situation is depressing. I can't see myself having a future with that type of credit. Please, help.
Additional info:
A couple of things has changed, but it's hard to see how they are causing me 116 points:
1) My Navient balance has increased by $145 because of interest (I plan on increasing my monthly payments to rid myself of this burden)
2) The following remarks were removed from my credit report: Student loan - payment deferred
Is it possible that I lost the points because my loan is no longer deferred?
Here's how my report looks as of now:
-Credit card utilization: 9%
-Derogatory marks: 0
-Total accounts: 27 (20 of them are from Navient and I have 7 credit cards)
-Payment history: 89% (The missed payments that I mentioned in my post brought my payment history down)
-Age of credit History: 2 years 11 months
-Hard inquiries: 9
A couple of things has changed, but it's hard to see how they are causing me 116 points:
1) My Navient balance has increased by $145 because of interest (I plan on increasing my monthly payments to rid myself of this burden)
2) The following remarks were removed from my credit report: Student loan - payment deferred
