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Paid off student loans and score dropped??

New Member

Re: Paid off student loans and score dropped??

so my question to you if i may is.

 

I was also in default due to a family matter and my loans went into default, i had one loan inwhich i had paid off and settled and the loan company sent the appropriate paperwork to the credit agency informing account "as settled with zero balance owed" is that a good thing?

 

. I know that the individual lending companys can list your loan as paid, paid and past due more then 90 days, etc. what is the right way it should be listed on your credit report once you have settled the amount owed.

 

secondly you said it is a bad thing to pay off the loan from a collection agency can you explain why? i was thinking as long as you can negotiate the loan since its an unsecure loan and sold off from your original lender the collection agency then buys the loan cents to the dollor owed. so if you come to an agreement why not settle? or what should you request in writing so you can be sure its cleared.

 

I know the collection agency threatons you with lens and lawsuit but realy for 20k? they would like to settle it rather then go through court but it is possible. any thoughts on that issue?

Message 11 of 12
Moderator Emeritus

Re: Paid off student loans and score dropped??


Originalsal wrote:

so my question to you if i may is.

 

I was also in default due to a family matter and my loans went into default, i had one loan inwhich i had paid off and settled and the loan company sent the appropriate paperwork to the credit agency informing account "as settled with zero balance owed" is that a good thing?

 

. I know that the individual lending companys can list your loan as paid, paid and past due more then 90 days, etc. what is the right way it should be listed on your credit report once you have settled the amount owed.

 

secondly you said it is a bad thing to pay off the loan from a collection agency can you explain why? i was thinking as long as you can negotiate the loan since its an unsecure loan and sold off from your original lender the collection agency then buys the loan cents to the dollor owed. so if you come to an agreement why not settle? or what should you request in writing so you can be sure its cleared.

 

I know the collection agency threatons you with lens and lawsuit but realy for 20k? they would like to settle it rather then go through court but it is possible. any thoughts on that issue?


Welcome to the forums!

 

Unfortunately this is an older thread and some of the posters, like the OP, haven't been on in months. It's quite OK to bump a thread and ask a question. Sometimes posters will subscribe to a thread and get e-mailed if someone responds. However, if looking for more responses and a faster response to your own specific situation I recommend starting a new thread. If wanting to do that, I recommend posting in Rebuilding Your Credit and clicking "New Message" found to the left-hand side of the screen atop the thread titles.

Message 12 of 12