I am brand new to this forum but I really look forward to any assistance that is able to be offered to me. February 25th I filed for a forbearance of my student loans for a length of 2 months. I found myself in a situation of needing immediate access to cash, and thought that this would help me if not for a temporary time. Also I had never used the option, so decided to see if it could help my situation.
From March 5th, I get a report on my credit that it has dive bombed an average of 15 points (Transunion) to 22 points (Experian and Equifax.) After researching, I was able to determine that this was only being caused by the forbearance as there had been no other impacts which would have caused my score to drop so quickly. It was from a post in this forum that alerted me to the fact that others were experiencing this ( see the following Student loan forbearance - 21 pt score drop not recovered ). I immediately called my student loan lenders, Navient and Nelnet, and asked them to remove the forbearances. I also made full payments for the prior charges that were delayed with the forbearance. For Nelnet there was one charge as it normally occured on the 1st (so March 1st had to be paid) and for Navient it was for the 27th of February (so that had to be paid.)
I was informed that the lenders report to the credit bureaus once a month, at the end of each month. I am 100% certain that the drops I experienced were due to the forbearance, but how long until my credit score regains the lost points? I was told by customer service that it was only temporary.
P.S. This should be information that is made more available, with this being a possibility of occuring.
While in forbearance you are not in active repayment. Is this your only installment loan? These fluctuations are common and I have seen them myself as I have gone in and out of forbearance.
No...credit cards are revolving credit accounts. This drop is probably due to the lack of reporting of your only installment account. You are not being penalized by your student loans but just seeing a pint drop due to the FICO algorithm. I wouldn’t sweat this very much if at all. Good luck