Darnt to heck lol, tbanks!
@InvincibleSummer3 wrote:Yes, it would look better. But they're not required to report - and there's no way to force them to put it back on if they've already dropped it off your credit report.
Starting scores after BK (Filed 4/18/24) EQ 571 , TU , EX
It helps. Most of my credit was student loans.
Thanks to them I have credit cards ranging from 7.75k to 20k
A car loan for 20k
Banks like psecu, nfcu, discover, amex.
Couldn't have happened with my loans.
Thanks to them I have credit cards ranging from 7.75k to 20k
A car loan for 20k
Banks like psecu, nfcu, discover, amex.
Couldn't have happened with my loans.
Starting Score: 501 EX FAKO
@FocusedAndDetermined wrote:
@Sitori wrote:I'm still trying to figure this stuff out too.
My CR says that I opened 6 accounts last year....but I was so confused because I only opened 3 new credit cards. Apparently the other 3 are showing as student loans. Now its stating I have a total of 9 accounts open...but I only actually have 4 credit cards. I had gotten a student loan back in 08, but was paying on it until I got back into school last year. It went into defferment, and now I have taken out 2 more student loans last semester. I think I have a total of around 10,000 in student loans.
Are these considered installment loans? Do these look good in a mix with having credit card accounts?
I have to continue taking more loans out each semester for the next 2 years! ugh! I wont be paying on them until I'm done with school and get a job. So I'm not sure how this is affecting my report either.
Since it's no longer being paid on, is it still reporting? Is it just reporting as a new account with a high balance? Is this hurting my score or doing nothing?
I have to apply for new credit in the next couple of months, and now I'm concerned that they will look at these "new accounts" with high balances, and deny me.
Yes, student loans are installment loans, and can help a little with credit mix. Since you were paying on your earlier loan, that account should have a good history. Not sure how lenders factor in students returning to school, and placing loans back into deferrment. Perhaps someone with experience will post.
I won't say that I am 100% experienced in the SL area, but 95% is fairly accurate due to all the nightmares surrounding them in addition to all that I had to learn about these wonderful loans . Focused is correct that the earlier loan w/PAA's will factor into your score along with the balance, payment amount, age itself, and AAoA, as an installment account. Since it has a fixed payment, just as with any other installment account, that payment amount will impact your total monthly obligations. I'm sure you know that much and I apologize in advance if I sound a bit "scripted" but there is a reason explained next. However, by going into a deferment, it *appears* on your CR's that the SL account(s) factor into your total debt (your question about the balance and/or reporting the high balance) across the board only; there is no longer a required payment, you are not making any payments, and the balance is actually rising due to the interest (unless it is an unsub'd in which case the balance will remain stagnant) so you will not be receiving any "benefit" score-wise per se. I don't want to say this will negatively affect you but it will not be doing much in the "helping" category either.
How I figured this out was due to a P&TD (Permanent & Total Disability Discharge) for all my SL's - a total of 14. I became disabled in 2009, filed for P&TD in July 2009, approved for the P&TD in Aug 2009, and immediately ALL the SL's went into a "Deferred - Conditional Discharge" status. My score before was higher than after and my score pretty much remained stagnant during the conditional discharge period. Apparently there is a 3-year waiting period, at least at that time (it has since changed drastically in some aspects), in which they can and will reinstate the loans, remove your deferments, and require payments to begin immediately if I were to be "cured", i.e. no longer disabled. This was not my case as I completed the 3-year period of deferment & received a cancellation of debt. I know this is not applicable to you other than the deferment aspect, however the point is the lack-of-impact on my scores during this timeframe. While they were all reporting PAA/Deferred, there is essentially no activity on the accounts. Therefore, if you are in a DEFERRED status, it will still report but you will not see any real benefits. Alternatively, look at this as a paid-off BUT open CC - no activity other than aging - which WILL help your scores ONLY when you go back into repayment to show your PAA'ing.
All that being said, lenders will weigh those fixed-payment amounts just as any other installment debt as, obviously, this is a required monthly payment taken from your available income, thus affecting your monthly DTI as well as total DTI ratios. From what I have been able to gather, NOT paying them will hurt just as much as a car note for comparison purposes. Since the car note is installment, this is another fixed-payment, just as the SL's, and all monthly pymts will be added up & compared to your monthly income.
In a nutshell, SL's, being they are installment accounts, will factor into your score pretty much equally as any other installment account with the exception of a Mortgage account which is weighed MUCH more heavily, and the lender(s) will make their decision based on such. The lender will have to look into the future if you are in a deferment as eventually, you'll have to pay the SL's, however being in "deferment" does not "help" your score as any lender will say "Well, they do not have to pay now but when they do, will this person be able to handle our payment in addition to all their other payments?". Hopefully I have given a bit more insight into this and if you need further explanations/details or any other questions, feel free to ask and I'll do all I can to help Take it easy