Rebuilding Your Credit

[I_SUFFER_FROM_FICO_ENVY]

Hey guys/gals...

My only negative, like more and more people every day, is student loans.  My student loan account lapsed while I moved and changed jobs.  I had to wait to bring the account current b/c I didnt have the money.  The account went 180 past due before I brought the account current with a forbearance.  I have now paid THREE months of payments on this account on time.

How long does the 180 days PAST DUE affect your credit?  Yes, I am aware that this info stays on my account 7 years.  More specifically, the mathematical model that these Credit Agencies use, how long till does it take till the damage is nullified?  I have heard through the grapevine that it takes a FULL TWO YEARS for the majority of the damage to be rectified?  Is that true?

Any mathematical explanation or link would greatly be appreciated.  I would really like to know, when a delinquent acount 90 days or more is brought current, how many points does your FICO improve monthly when making payments on time regularly.

Thanks so much.

You guys ROCK!

[annielorie]

If you moved send a GW letter stating that you didnt receive the statement due to foul up in the fowarding of mail.  That gives the sstudent loan people a reason for the late payment that was not in your control. Often this is all they need to remove the late payment You. can say you didnt even realize it with the move and change of jobs those are the two most stressful things next to Death. That is true!! By the way you have nothing to loose except the late marks so go forit!!

[I_SUFFER_FROM_FICO_ENVY]

If that doesnt work, how long till the damage is corrected?  Do I take a "hit" for two years?  Obviously, I know it stays the full 7 years.  But it has to increase exponentially, right?

Thanks

[annielorie]

From what I know it will affect you for fico reasons for 2 years the older it gets the less it hurts but remember with any derogs late or judgements at all you exclude yourself from the rebucketing of the clean people and keep your score from reaching its full potential! And if it doesnt work keep at it its only a phone call and a stamp one day someone might have a heart and say yes. Also the best day to contact is on friday if by home people are usually happier and planning the weekend.  This friday would be great since its hjoliday time !! Let me know the outcome! GOOD luck!

[MarineVietVet]

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annielorie wrote:

From what I know it will affect you for fico reasons for 2 years the older it gets the less it hurts but remember with any derogs late or judgements at all you exclude yourself from the rebucketing of the clean people and keep your score from reaching its full potential! And if it doesnt work keep at it its only a phone call and a stamp one day someone might have a heart and say yes. Also the best day to contact is on friday if by home people are usually happier and planning the weekend.  This friday would be great since its hjoliday time !! Let me know the outcome! GOOD luck!

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I will agree that any negative loses it's sting over time but a late payment this severe will have a major impact for the entire 7 years it can report.

[annielorie]

  Marine Viet vet I didnt know that Is that with a 120 as well what is the 2 year parameters then?

[MarineVietVet]

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annielorie wrote:

  Marine Viet vet I didnt know that Is that with a 120 as well what is the 2 year parameters then?

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Any late payment of 90 days and over is considered a major derogatory.

[RobertEG]

If the student loan was a government insured loan, the credit report exclusion period is not 7 years for prior delinquencies.

Those periods were extended under provisins of the Higher Education Act, as referenced by the footnote to FCRA 605(a)(5).

[MarineVietVet]

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RobertEG wrote:

If the student loan was a government insured loan, the credit report exclusion period is not 7 years for prior delinquencies.

Those periods were extended under provisins of the Higher Education Act, as referenced by the footnote to FCRA 605(a)(5).

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That's true. Here are the specifics:

20 U.S.C. § 1080a : US Code - Section 1080A: Reports to credit bureaus and institutions of higher education

A consumer reporting agency may make a report containing information received from the Secretary or a guaranty agency, eligible lender, or subsequent holder regarding the status of a borrower’s defaulted account on a loan guaranteed under this part until—

(1) 7 years from the date on which the Secretary or the agency paid a claim to the holder on the guaranty;

(2) 7 years from the date the Secretary, guaranty agency, eligible lender, or subsequent holder first reported the account to the consumer reporting agency; or

(3) in the case of a borrower who reenters repayment after defaulting on a loan and subsequently goes into default on such loan, 7 years from the date the loan entered default such subsequent time.