My girlfriends parents were making her student loan payments, but stopped without telling her. The loans went to collections and went unpaid for a long time. She had the means to make the payments but didn't know they weren't being paid. She paid the entire balance off in full as soon as she found out. But she has no credit history other than this terrible scenario and is struggling to rebuild her credit. Now she has been rejected from even secured credit cards and is at a loss for where to start rebuilding. Are there other avenues easier than secured credit cards? Can the serious derogatory marks be contested? They were not only her parents fault for letting them go unpaid when they had agreed to the responsibility. The problem was exasperated as the hid it from her that they had stopped paying. She made every effort to fix the situation and paid the loans off in full as soon as she became aware of it. Thanks in advance for any advice. It is both needed and appreciated!
Some hard reaility for ya.
You really cannot contest these accounts. They were her responsibilty. If she took out the loans, she needed to keep track of them. It sucks her parents did that to her, but that is a family issue and not really an issue of credit repair. It is good she paid off her responsibility, but it doesn't diminsh her hand in this.
You could call and write letters to the companies the loans were taken out, and try for a good will adjustment. Explain the situation, and what happend. Since they are paid, she might be able to have them change the lates or delete the tradelines.
Which secured card did she apply for? There are different tiers of those if you could believe it. Some will deny, others will approve.
How long ago did she pay these down? The older they are, the easier it is to apply for secured cards. Does she have all three credit reports from annualcreditreport.com?