Student Loan Rehabilitation And The Effect On Tradelines

[ash4life]

MaddMatter70:

All my credit(2 cards) are below 15%, So, I hope my broker got the info from Dept of Ed that she needs for the rapid re-score. I heard it takes forever for Dept of Ed to update the CRA's. They told me every 3d Sunday of each month they update.

There is no other negative info on my credit report except the "in collections" from Dept of Ed (4 trade lines) and late payements from my former school loan holders. Weird thing is, I first had CitiBank, defaulted, and it went to Salie Maie, defaulted. finished rehab and loan will be picked back up by Salie Mae. I wonder if Salie Mae will update those tradelines but I hear Salie Mae is not very good with that.

Crossing my fingers!!

[MaddMatter70]

Ash4life:

I had a bk a year ago as well as the defaulted then rehabbed loans, I am shooting for a mortgage at the two year mark, so I will keep my fingers crossed for you too

[MaddMatter70]

kjel:

As the credit scoring model is a complex and questionable formula, I am not surprised at all.  All the factors in the formula are almost as unique as the people the information comes from as far as I can tell.  Seems to be (and maybe it’s just me) it is just a roll of the dice no matter what you do.  Checking stuff for accuracy and keeping the bills paid on time is always important, however; worrying about the score too much will drive folks to some form of gambling insanity...lol

[BigE2000]

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@MaddMatter70 wrote:

kjel:

As the credit scoring model is a complex and questionable formula, I am not surprised at all.  All the factors in the formula are almost as unique as the people the information comes from as far as I can tell.  Seems to be (and maybe it’s just me) it is just a roll of the dice no matter what you do.  Checking stuff for accuracy and keeping the bills paid on time is always important, however; worrying about the score too much will drive folks to some form of gambling insanity...lol

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Damn straight.  I wouldn't put too much effort into thinking about scores.  I think a lot of times just the passing of a few months can raise a score based on account(s) age.  However, it's kind of important to have an idea where you stand score wise. 

Hope everybody here is doing okay.  I'm still waiting for my new tl's...it's been a few weeks since rehab was finalized.  Looking forward to sharing when I find out.

[kjel]

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@MaddMatter70 wrote:

kjel:

As the credit scoring model is a complex and questionable formula, I am not surprised at all.  All the factors in the formula are almost as unique as the people the information comes from as far as I can tell.  Seems to be (and maybe it’s just me) it is just a roll of the dice no matter what you do.  Checking stuff for accuracy and keeping the bills paid on time is always important, however; worrying about the score too much will drive folks to some form of gambling insanity...lol

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So very true! Right now my focus is just dealing with cleaning up everything on the CRs from when I was sick and unemployed, paying down my credit cards, and making sure everything is reporting correctly. The scores will go up as time goes on.

[hopingsoon]

There's been some change to my CR. I pulled an EX report on 4/5 it showed duplicate TLs for the SL (as it has for the last few years). Today I pulled EX again and it is only showing the original TL. The account is closed and there is a 0 balance, it also shows all the lates leading up to default. So, 9th payment 3/15 and on 4/14 I'm seeing some movement. Got ants in my pants waiting for this to finally be resolved.

[blitz]

So I'm on my second payment of rehab with ECMC for my Direct Loans and everything in this thread has been very helpful. VERY. My credit has shot up about 70 points already in about 5 weeks or so. I have three defaulted direct loans with IRS offset, luckily no wage garnishing (though that could be because the employer they WERE garnishing still has me in the system as an employee, but I don't receive a paycheck from them, and haven't over two years). I think the point increase has been due to the fact that I have 100% on time payments for everything else, including a new car last year. Very hopeful with this rehab that my credit score will increase significantly from the 576 it is now, especially if direct loans have a history of removing derog and late payments with the original start date (2005 for my first one, 2007 for my last one). Will be updating as I get closer to the end of the rehab.

[tfkallday]

Hi everyone I am new to the credit game and have been posting on the rebuilding forum.  Anyway I have all of my ACS loans current but have defaulted on my Direct Loans which were a ton of 500-2500 dollar loans rolled into one payment.  I believe its literally like 17 loans because there are 17 defaults on the Direct Loans for different amounts.  Anyway I entered rehab in December and am set to complete it in August.  I was wondering if all of the default statuses will come off of my loans and was also wondering what kind of credit jump I can potentially expect from this?  I know its hard to tell.  My score right now is 556 :-(

[tfkallday]

Hi everyone I am new to the credit game and have been posting on the rebuilding forum.  Anyway I have all of my ACS loans current but have defaulted on my Direct Loans which were a ton of 500-2500 dollar loans rolled into one payment.  I believe its literally like 17 loans because there are 17 defaults on the Direct Loans for different amounts.  Anyway I entered rehab in December and am set to complete it in August.  I was wondering if all of the default statuses will come off of my loans and was also wondering what kind of credit jump I can potentially expect from this?  I know its hard to tell.  My one score right now is 556 :-(

[BigE2000]

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@tfkallday wrote:

Hi everyone I am new to the credit game and have been posting on the rebuilding forum.  Anyway I have all of my ACS loans current but have defaulted on my Direct Loans which were a ton of 500-2500 dollar loans rolled into one payment.  I believe its literally like 17 loans because there are 17 defaults on the Direct Loans for different amounts.  Anyway I entered rehab in December and am set to complete it in August.  I was wondering if all of the default statuses will come off of my loans and was also wondering what kind of credit jump I can potentially expect from this?  I know its hard to tell.  My one score right now is 556 :-(

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Congrats on being well into rehab.  I'd spend some time reading this thread...there is a ton of info shared.  People are having good luck with Direct Loans.  Your default status will be removed on the NSLDS and probably the new loans on your credit report will not have bad info.  It'd be almost impossible to forecast what kind of credit score bump you'll see, but I'd guess a significant one.  Just stick with it....if your last payment is due in August, you're probably looking at rehab being finalized with a new lender in October.  My advice is keep it simple for now and don't miss a payment.  Good luck!