Loan questions

[teddingt]

Morning, 

I have been lurking but not posted, read a ton a threads and still confused as ever.

I have a defaulted student loan from 1988.  It is not showing showing on my credit but I will not clear CAIVRS.  I am trying to buy a house and I am wondering should I consolidate or rehab.  

When I review my loan information it says my Stafford loan is with Debt Management and Collections System. But I have been making payments since November to Premier Credit of North America. I will make my 9th payment in July.  As I understand it consolidation will show a new tradeline and will impact my score. (I am wanting to avoid this)

Now my questions.   

Should I continue with the rehab? Since the loan is not on my credit will it jump as others have? Or should I consolidate and see what impact it has since I am a mid score of 644 and need mid score 640 for a loan. 

I also have been waiting on filing my taxes for the year due to questions about consolidation but if I file it would completely pay my interest off giving me a nice tax credit next year. 

I understand that these are decisions that I need to make for myself but I would like a little guidance from people on the board who have gone through this and may have information I don't have yet.

Thanks in advance 

Tracy

[SCF]

If you continue with the rehab, once your loan is picked up, the tradeline(s) should be backdated to the original open date for the loans, with a clean payment history.  Given how old the loans are, that should impact your average age of accounts and give you a score boost (unless you have a pretty thick, aged, file).  I would continue with the rehab, let the loans be picked up, and then decide at that time if consolidation is something you'd like to pursue. Consolidation has other benefits - like giving you one payment to keep track of, at a single lender, and possibly adjusting the length of your loan for a lower payment amount, but you're right that having a new tradeline would lower AAoA and give you that new account ding.