Reply
Frequent Contributor
Posts: 453
Registered: ‎01-03-2012
0

Paid, defaulted student loan from 2006 listed for 2008?

[ Edited ]

I am teetering on the edge of having all my financial issues from my early 20's removed within the next year... but the student loan, I believe.

 

I took out the loan in early 2006, was only for $1000.  That next year, I ran into some personal issues (disabled son, moved, custody battle, etc) and had to leave school.  I never paid on the loan and was never contacted about the loan. It was a pretty difficult time and I didn't leave a forwarding address and was a 1099 employee.  Eventually it ended up defaulted on my credit report and was then transferred to a collection agency.  It was paid in full in 2010.

 

Now, it is listed on my credit report with an open date from 2008.  Is there anything I can do to have it removed sooner since the account was actually open in 2006 and a payment was never made on it?

 

If I can figure out how to have this removed, I will be left waiting less than a year for (all including this student loan account) 3 paid derogs from EQ, 2 paid and 2 unpaid (medical) derogs from EX, and 3 paid and 1 unpaid (medical) derog from TU to fall off.  After which, I have 10 open credit accounts, 1 closed credit account (from 2004, will fall off soon), and a home mortgage (6 months old) all with perfect payment history. 

 

I'm sure it won't really make a difference to my score, but just that feeling of having a clean report would be nice.  It's been a long road, and I've done it as a single mom with 3 kids. 

Cap1(sc) 550, Cap1 750, Walmart 750, Home Depot 3000, Amazon 700, US Bank 1500, Childrens Place 1100, JC Penney 700, Old Navy 700, PayPal 700, Torrid 700, Lane Bryant 150, Avenue 500, OSP 500, Amex Blue 2000, Disc it 1000, Walmart Disc 2200, Old Navy Visa 1700, Mortgage 09-2012, Car Loan 03-2013



Current Score: EQ 665 EX 687 TU 695


Take the FICO Fitness Challenge
Community Leader<br> Valued Contributor</br>
Community Leader
Valued Contributor
Posts: 1,350
Registered: ‎06-09-2008
0

Re: Paid, defaulted student loan from 2006 listed for 2008?

If you have documentation that the loan is reporting incorrectly, then the first thing I would do would be contact the lender that is reporting.  Explain the situation and offer to send them the documentation.  If that doesn't work, you can dispute with the CRAs.

 

BUT, changing the open date to 2006 will not remove the lates from your report any sooner.  Negative information is not removed based on when the account was opened, it is 7 years after the negative itself occured.  So, as each late on that account reaches 7 years old, they will slowly fall off, and once the account has been closed for 7 years (since it has a negative status), it will fall off entirely.  If it was paid in full in 2010, it should fall of in 2017.

 

Your only other option for removing the information sooner is to write goodwill letters to the lender/collection agency reporting the negative information.  Some people have had success, but it often takes multiple attempts and some luck.  As you said though, a loan this old is not impacting your score as much as it did years ago, and the impact will lessen as time goes on.  It may be a better idea to wait it out and focus your energy on building good accounts on your report.

Established Contributor
Posts: 817
Registered: ‎10-15-2012
0

Re: Paid, defaulted student loan from 2006 listed for 2008?

Thanks for that explanation SCF as I has a similar question. I was afraid that paying my loans off would result in the lates being frozen in time until the whole account fell off. Do you think it would be advantageous to not pay off my loans until the lates fall off so that the TL will now be positive and report for 10 years after closing? I'm not likely to do that, just wondering what you may think. I have 4 SL accts reporting 30-120/180 lates from May-Nov 2010.


Starting Score: 515
Current Score: EQ08 698 EX04 710 TU08 729
Goal Score: 700+

Amex BCP $25000 | Discover IT $10250 | PSECU $10000 | Barclay Ring $6500 | Citi DC $6100 | PayPal Extras MC $5045 | DCU $5000 | Chase Freedom $4000 | Barclays Aviator $2400 | Cap 1 Platinum $1700 | Union Plus $1000 | Target $200
Established Contributor
Posts: 817
Registered: ‎10-15-2012
0

Re: Paid, defaulted student loan from 2006 listed for 2008?

[ Edited ]

Thanks for that explanation SCF as I had a similar question. I was afraid that paying my loans off would result in the lates being frozen in time until the whole account fell off. Do you think it would be advantageous to not pay off my loans until the lates fall off so that the TL will now be positive and report for 10 years after closing? I'm not likely to do that, just wondering what you may think. I have 4 SL accts reporting 30-120/180 lates from May-Nov 2010.

 

Sorry for the dup. Computer acting wonky.


Starting Score: 515
Current Score: EQ08 698 EX04 710 TU08 729
Goal Score: 700+

Amex BCP $25000 | Discover IT $10250 | PSECU $10000 | Barclay Ring $6500 | Citi DC $6100 | PayPal Extras MC $5045 | DCU $5000 | Chase Freedom $4000 | Barclays Aviator $2400 | Cap 1 Platinum $1700 | Union Plus $1000 | Target $200
Frequent Contributor
Posts: 453
Registered: ‎01-03-2012
0

Re: Paid, defaulted student loan from 2006 listed for 2008?

I don't see any lates at all on my credit reports... I literally didn't make a single payment, then paid in full... Well, my tax refund was offset. I don't know if that makes a difference.
Cap1(sc) 550, Cap1 750, Walmart 750, Home Depot 3000, Amazon 700, US Bank 1500, Childrens Place 1100, JC Penney 700, Old Navy 700, PayPal 700, Torrid 700, Lane Bryant 150, Avenue 500, OSP 500, Amex Blue 2000, Disc it 1000, Walmart Disc 2200, Old Navy Visa 1700, Mortgage 09-2012, Car Loan 03-2013



Current Score: EQ 665 EX 687 TU 695


Take the FICO Fitness Challenge
Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on actual applicant approvals and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.