11-16-2012 09:28 AM
I have a pretty classic tale about a loan that I mistakingly thought was in deferment. Long story short, it wasn't, and I became 90 days deliquent on it. This was about a year ago. Since then I've made all payments on time. I checked my credit report and those late payments are killing my score. I was pretty shocked at how much they lowered both my EQ and TU scores. From the reading that I've done, it looks like student loans remain on your credit report for 7 years. My question is if I pay off the loans, will the late payment remain on my credit report for 7 years as well? Is there any hope of GW? I called them and an operator told me there's not much they can do unless it was an error on their part. I'm cringing thinking about my rates the next time I want to buy a car or a house.
Thanks in advance!
11-16-2012 10:47 AM
Unfortunately those lates will continue to show for about 7 years. You can try writing a goodwill letter asking them to take the late off. Be nice. Be persistent. Search on this forum to see if anyone else has had good luck with this.
The damage to your FICO scores will get to be less and less as time passes.
Unfortunately we see this a lot. Managing student loans is not easy. It takes attention to every detail so that this can be avoided.
12-14-2012 06:40 PM
Unfortunately Fedloans are the anti GW. I tried them in November and the VP sent me reply back stating they could not remove. They are required to report accurate information. The bad thing is I never knew they transferred my loans to them until I filed BK and lates were already being reported. I even tried going through CR's and it was returned as verified.