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Frequent Contributor
Posts: 371
Registered: ‎07-20-2012
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Re: Student Loan Rehabilitation And The Effect On Tradelines

[ Edited ]

UPDATE:

 

Per my previous posts in this thread; my newly rehabbed loans hit my CR on 29DEC12.  It shows paid as agreed from the beginning.  I have 3 loans from 2005, 2006, 2007.  The net affect was a 9 point gain in FICO.  My AAoA down slightly because my previous AAoA was sitting at 9 years.

 

The original S/L held by DOE still show "paid in collections" with five "120 days late".  The "paid in collections" hit my CR about mid-December and my score then increased by about 7 or 8 points. 

 

So I am done with the clean up; I had some great success at GW.  I will now begin phase 2 of the rebuild: hard Core GW.  Most of my baddies DoFD is Jan 2009 (4 years) so I wonder how much of an impact they have.  My BK7 filing date is coming up so I hope to get rebucketed; drop a little, the upward and onward to 750.

 

The FICO score simulator over estimated my scores.  Six months ago it predicted a 700 by the end of 2012 if I paid all debts on time, which I did.  I am sitting at FICO ~675.  I have been at this score for 6 months now.  So lets hope for a FICO score drop here in the next few weeks.

Fico'08 AUG15: EQ 710, EX 710, TU 699; Clean since BK7 D/C JUN2011; Util 6%, AAoA 5 yrs, Inc=$100K.
Regular Contributor
Posts: 233
Registered: ‎10-03-2009
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Re: Student Loan Rehabilitation And The Effect On Tradelines


fatboi wrote:

Unique620, Did your credit scores improve yet?


Unfortunately I can not see how it affected my credit because of an AT&T collection that hit my account January 3rd, right before the rehab lender deleted account from all credit reports and the original lender updating report to state "paid as agreed"/ closed. Edfiancial did not change the notations of the lates. Will keep you updated when collection is removed.

Filed BK 04/2011|BK Discharged 08/2011|Hard Pull I 12/05/2012 |


Starting Score: EQ 523 03/2012
Current Score: EQ 649 I TU 655 (02/2013) EX 672(01/2013)
Goal Score: 700 on all CR's 04/2013
Established Contributor
Posts: 746
Registered: ‎11-27-2012
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Re: Student Loan Rehabilitation And The Effect On Tradelines

I received a courtesy call from CBE last week updating me that I am in the home stretch of rehab (two more payments!) and what to expect next. I asked what lender was picking up the rehabbed loans and she said many of the ones they serviced were being picked up by Great Lakes. Not sure what that's going to do for me on the credit score side though. Guess I will have to wait it out.

Current Score: TU: 674 | EQ: 722 | EX: 717 | Last Inq. 2/16/15...Locked Up in The Garden
NFCU Cash Rewards $14K | Chase Sapphire Preferred $5K | Amex Blue Cash Preferred $6K | Cap1 Quicksilver One Visa $9K

Valued Member
Posts: 38
Registered: ‎09-14-2011
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Re: Student Loan Rehabilitation And The Effect On Tradelines

This thread has helped me greatly since I started my rehab back in 2011, so before I leave I'd like to give something back and recap my progress.

 

August 2011 - FICO 591

I begin my student rehab and make my 1st month's payment. I have 2 defaulted Direct Loans on my credit reports along with a Verizon and a Sears account that were charged off.

 

October 2011 - FICO 600

The Verizon account drops off due to age and I manage to get an unsecured $500 Cap1 card to start builing credit.

 

December - FICO 610

I add another unsecured $500 Cap1 card.

 

April 2012 - FICO 625

I make my 9th rehab payment and call the DOE. They send out a request to remove the default status on my loans and any wage/tax garnishments. I begin the wait for my loans to get picked up by another lender.

 

May 2012 - FICO 686

The two defaulted student loan tradelines are removed from my reports. The only negative I now have is an old Sears chargeoff account.

 

August 2012 - FICO 731

My last negative account (Sears) falls off as I still wait for my loans to be picked up. The only thing showing on my reports are my 2 $500 Cap1 cards.

 

September 2012 - FICO 728

My scores take a slight hit as I go on an app-spree. USAA Visa $6K, PSECU Visa $20K(!!!!!), Discover 1K, DCU $3K. I now have a little over $30K in total credit all opened within the last year.

 

October 2012 - FICO 728

My loans finally get picked up by another lender (took 6 months Smiley Mad)

 

January 2013 - FICO 760

My new tradelines finally show up on my credit reports as installment loans. The 2 new tradelines date all the way back to 1997 and show a perfect payment history for the last 16 years! Talk about adding some age to my reports!

 

So there you have it - zero credit and 591 FICOs to $30K+ credit and 760 FICOs in about 16 months total. The Student Loan Rehabilition program is amazing.

 

Frequent Contributor
Posts: 388
Registered: ‎07-09-2012
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Re: Student Loan Rehabilitation And The Effect On Tradelines


freshtalk wrote:

This thread has helped me greatly since I started my rehab back in 2011, so before I leave I'd like to give something back and recap my progress.

 

August 2011 - FICO 591

I begin my student rehab and make my 1st month's payment. I have 2 defaulted Direct Loans on my credit reports along with a Verizon and a Sears account that were charged off.

 

October 2011 - FICO 600

The Verizon account drops off due to age and I manage to get an unsecured $500 Cap1 card to start builing credit.

 

December - FICO 610

I add another unsecured $500 Cap1 card.

 

April 2012 - FICO 625

I make my 9th rehab payment and call the DOE. They send out a request to remove the default status on my loans and any wage/tax garnishments. I begin the wait for my loans to get picked up by another lender.

 

May 2012 - FICO 686

The two defaulted student loan tradelines are removed from my reports. The only negative I now have is an old Sears chargeoff account.

 

August 2012 - FICO 731

My last negative account (Sears) falls off as I still wait for my loans to be picked up. The only thing showing on my reports are my 2 $500 Cap1 cards.

 

September 2012 - FICO 728

My scores take a slight hit as I go on an app-spree. USAA Visa $6K, PSECU Visa $20K(!!!!!), Discover 1K, DCU $3K. I now have a little over $30K in total credit all opened within the last year.

 

October 2012 - FICO 728

My loans finally get picked up by another lender (took 6 months Smiley Mad)

 

January 2013 - FICO 760

My new tradelines finally show up on my credit reports as installment loans. The 2 new tradelines date all the way back to 1997 and show a perfect payment history for the last 16 years! Talk about adding some age to my reports!

 

So there you have it - zero credit and 591 FICOs to $30K+ credit and 760 FICOs in about 16 months total. The Student Loan Rehabilition program is amazing.

 


Your story is so encouraging!!!  I hope I see a nice score increase like that!

 

I just paid my 9th payment but for some reason my 7th payment is not posted with DOE yet.  After numerous phone calls they are suppose to have it manually added by Monday.

 

I am sitting a few more negatives than you but think I have them negotiated out so that when I pay them off they will go away.  Patience is not my virtue and I am realizing this whole credit rehab is nothing more than a waiting game!

 

I will keep everyone posted as my negative come off and my SL gets picked up and replaced with lots of positive things!




June '12: EQ 553 TU 0 EX 545
April '13 Lender Pull EQ 731, EX 692, TU 722 - all FICO

Closed on home May 22, 2013 at 2:00pm!!!
CU Visa $1000, VS $350, Chase Freedom $1000, Discover IT $2500, Home Depot: $2700, Menards $3000, NFM $3500
What's been deleted: 32 collections, 5 PR, 2 tax liens, defaulted student loans
Established Contributor
Posts: 731
Registered: ‎08-12-2011
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Re: Student Loan Rehabilitation And The Effect On Tradelines

I can't believe that there are so many people who end up having their entire negative trade lines removed. This is great for your credit histories. Many congrats to you all. 

 

 

Wish me luck. I never defaulted and I'm just trying to get late payment remarks removed after I could no longer postpone payment on my loans. I never got any notice from my servicer either. I've got every communication they've sent on file since 2007. No letter saying "hey, we can't grant your last request and this is why."  Wish me luck getting these late payments removed.

New Visitor
Posts: 1
Registered: ‎01-31-2013
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Re: Student Loan Rehabilitation And The Effect On Tradelines

I am very confused.  When I started my rehabilitation program I was told once the program was complete and my loans were picked up by a new lender all negative reporting from the previous lender would be removed and reported as paid as agreed from the beginning of the loan.  The exact phrase "It will be as if you never made a late payment" was used.  I finished the program and my loans were picked up by Nelnet.  Nelnet is reporting perfect payment history all the way back to 2005 when my loans started.  EdFinancial removed the default status and changed the balance to $0, but all the late payments are still showing.  I have read comments from many people saying all the lates were removed and others saying they aren't.  Which is it? EdFinancial says if I can prove NCO told me this they will "review" my account.  Why is this up to their discretion? Why are some lenders willing to remove the negative history and others aren't.  I thought all lenders were bound by the same reporting rules. 

Community Leader<br> Valued Contributor</br>
Community Leader
Valued Contributor
Posts: 1,371
Registered: ‎06-09-2008
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Re: Student Loan Rehabilitation And The Effect On Tradelines


junimommy wrote:

I have read comments from many people saying all the lates were removed and others saying they aren't.  Which is it? EdFinancial says if I can prove NCO told me this they will "review" my account.  Why is this up to their discretion? Why are some lenders willing to remove the negative history and others aren't.  I thought all lenders were bound by the same reporting rules. 


Some lenders have a policy of completely removing the old accounts when a rehab is complete, some stick to the exact letter of the law and only remove the default status and update the loan to paid in full.  It is up to their discretion for the same reason that lenders can opt to make "goodwill" adjustments to credit reporting.  Reporting has to be accurate, but it does not have to be complete, so they are free to omit late payments or other negative information if you can convince them to do so (or, as in the case of removing the default status, some sort of law or program requires them to).

 

The best you can do is continue to work with EdFinancial to get your reporting adjusted, but they may not be willing to do that, so also be prepared to just wait out those lates.

New Member
Posts: 14
Registered: ‎02-01-2013
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Re: Student Loan Rehabilitation And The Effect On Tradelines

I did a rehab through NCO a while back and everything seems to be back to normal. I wasnt checking my credit Scores and such back then, but as of today there is no delinquent or late payments showing. Good luck!!! Smiley Happy
Starting Score: 08/2012 myFico EQ616
Updated: 02/2013 myFico EQ646

Current Goal: 700
New Contributor
Posts: 62
Registered: ‎08-05-2012
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Re: Student Loan Rehabilitation And The Effect On Tradelines

[ Edited ]

making 9th payment this month, on the 15th, resisting the urge to do anything other than pay and hold my breath, I want so bad to make this one early, but I won't.  So.... I was with glhed, so I am hoping they pick it back up.  I know they have my current address/phone numberSmiley Happy


Starting Score: EQ608 TU531 EX568
Current Score: EQ694 TU697 EX710
Goal Score: 760 ALL


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