Re: OLD Defaulted loans. Rehab them? Pay them off?
09-18-2012 01:37 PM
(I had to create a new account. I didn't note my password and now the account recovery is asking for my SSN which I never gave. I don't think so!)
It's not that bad. On a recent car loan (prior to the SLs showing up in 6/2012) I was at 751 median.
I decided to just pay it. I negotiated a principal only payoff which shaved all the interest since 2006 and CA fees, and frankly after reading 35 pages of the Loan Rehabilitation thread started by Ficotron, I have no interest in dealing with two years of hassle and checking my reports and calling and emailing and calling who-knows-who to get items removed from my record. That's a tough row to hoe and I respect those that have the patience and time. I don't.
So, what triggered this was a refi. I'll have to wait about 90 days (max) for the DOE to report back to the agencies. My scores as of yesterday were:
653 - median credit score
610 = equifax
653 = experian
685 = transunion
I'll try to remember to post back here in January or whenever I attempt the refi again what my scores turned out to be in my situation, once the payoff of the loans updates on my CRs.
Student loans... ugh. I'd hate to be signing my name on the dotted line at today's tuition rates.
Best of luck to all.