Community Leader<br> Established Contributor</br>
Community Leader
Established Contributor
SCF
Posts: 1,042
Registered: ‎06-09-2008
Re: Gosh... I feel duped.

Were your loans picked up by a new lender before you paid them off?  That would result in the creation of new, positive tradelines backdated to the start of your original loan (a positive you don't get from just paying them off).  Also, once rehab is complete, the default status will be removed from the old loans (although not the lates), and the collection account will disappear from your credit report (rather than being marked as paid, paid collections still have a negative impact on your score).

 

Updates to your report can take 60-90 days.  Although you paid some interest, rehab definitely has benefits that will save you that money in interest rates and hassle in the years to come.