topic Re: 😭Devastating blow to credit in Rebuilding Your Credit

😭Devastating blow to credit

Sitori — Fri, 17 May 2019 05:42:10 GMT

Hi everyone. It’s been a while since I’ve posted. I really need some advice, I’ve been crying all day with this craziness that has happened and I don’t know if it can be fixed.

10 years ago I started my credit journey on this forum and thanks to everyone here I gained a wealth of knowledge, it also made me completely OCD with my credit. It has been like my child. Protecting it to the point of not eating for days to avoid any 30 day lates during my times of financial struggles.

I’ve been around the 700 scores for years and Try very hard staying there. I’ve had a couple bumps but nothing major. Just mostly my utilization, DTI, Etc.
and have been shopping recently for a zero interest card to transfer balances to pay everything off.

Anyway, I’ve had my student loans in forbearance along with the differed IDR payment plan for a couple years now bc of my low income after school. I have not had to pay anything on them yet since I qualify for zero payments.

Last night I got notifications from credit karma that FEDLOAN reported all nine accounts 90 days late!!!

MY SCORES DROPPED 200 POINTS ACROSS THE BOARDS according to CK.

I have been in shock all day, I spoke to multiple reps at fedloan and they couldn’t even figure it out without speaking to a supervisor Bc it shows my accounts in current standing, no delinquency anywhere. Plus showing in forbearance with retroactive coverage over the last couple months. Apparently according to the supervisor it was some horrendous timing as to when I called in a few weeks ago to renew the IDR and the new forbearance and when the old one expired. Literally on 4/30 it ended and the new one started 5/1. They said if I had called ONE day earlier it never would have been reported.
Whaaaaaatttttt????
How insane is this???!!

They won’t do anything about it, they said I can only dispute it.
What do I do now???? Am I screwed for 7 years???

Are there any credit repair companies who are good with getting lates taken off??? I’ll do anything !!!! Pay anyone!! I can’t have this happen right now. I am pregnant and have been shopping for a car I need so desperately!! No one will even look twice at me now with a score of 500!!!

Please tell me there is hope. I am dying right now. To the point of looking into bankruptcy. What’s the point of doing anything sitting around for 7 years waiting for this stuff to come off??? My credit score would be destroyed just the same with a BK.

I am so depressed I don’t even know what to do. This is something I have protected and babied and put as my number one priority for 10 years all for it to come crashing down in one day for this confusion.

I feel like it was completely misleading. The form I have only states the approved forbearance and the dates. Nothing about any delinquency or it being past due. It is so misleading and confusing but no one seems to care.

Do I have a chance of getting them removed? What repair company could I try?

Please give advice. 😭😭😭 thanks everyone

Re: 😭Devastating blow to credit

MyDataMyChoice — Fri, 17 May 2019 13:07:44 GMT

Good Morning

Thank you for sharing

Do you mind sharing your list of current creditors, amount owed, and credit limits, including student loans, mortgage, and auto. For mortgage and auto - include the current fair market value.

Also you said Low Income - are you lower than the median in your state?

https://www.justice.gov/ust/means-testing

Student Loans are generally not Bankruptable...

However if you have a lot of other debit.. going bankrucpy will allow you to focus on paying back the studen loans. (Which will always accrue interest and can even garnish your social secuirty in retirement... so best to pay them off)

I wouldnt rely on the 10-20 year forgiveness program... it will cause you a headache IF You qualify... many belive they do to find out in 10/20 years they weren't signed up right etc... and still have to pay... Also they will send you a tax bill (1099-C) for the forgiven balance. OUCH

As far as the late payments go... Your in Income Based Repayment - which is 0.00 for you at this time?

Have your asked for your annual credit report yet? If not go do that... annualcreditreport.com screenshot the negative accounts... include in your IN MAIL dispute circle/highlight what is wrong and include explaination (short explaination) i.e. this is supposed to be listed as current - wason income based repayment NEVER LATE - In Forbearance., etc... etc.. If you have any paperwork that says your in forbearance... or email correspondence etc... attach that too... and highlight, Send this CERTIFED MAIL to all three major bureaus....

Re: 😭Devastating blow to credit

gdale6 — Fri, 17 May 2019 14:28:47 GMT

Just dispute it and go from there.

Re: 😭Devastating blow to credit

Aspireto850 — Fri, 17 May 2019 14:48:50 GMT

OP,

That is so horrible. This may not be of much to you right now but I’m sending well wishes your way that all get resolved very quickly and in your favor! 🤞🏼🤞🏼

Re: 😭Devastating blow to credit

coreysw12 — Fri, 17 May 2019 15:45:03 GMT

Breath in a long, deep breath... hold... now exhale. The worst thing to do in any situation is panic, you'll make irrational decisions like filing for bancruptcy because of one baddie that hit your credit report that wasn't supposed to.

You'll be back on track in no time, just follow the dispute process (that's what it's there for), and continue following up on it until it's been resolved. It might take a couple weeks and a few letters and phone calls, but you'll be successful. The advice given by others above is good - send certified letters to all 3 bureaus. Include copies of any paperwork that supports your claim. If your claim is legit, it will get removed.

Good luck and keep us posted

Re: 😭Devastating blow to credit

Anonymous — Fri, 17 May 2019 21:55:32 GMT

Hi there. I just posted about what happened to me a couple hours ago. I am devastated about what just happened to me as well. I know that's not much help, I don't even know what to do about my situation either. I have been so upset today there's no words. So you are definitely not alone in how you feel.

I have spent YEARS paying all of my bills on time. Slowly climing my way up to recovery from a divorce 5 years ago where I defaulted on accounts.

All of my payment history has been perfect since that time.

I have Care Credit and I have paid them diligently for the last few months. Last month I entered in my montly payment, put in my checking account number, received an email confirmation from them and didn't think much about it. Cue the credit alerts yesterday. I got hit with a 30 day late from Care Credit and my credit score instantly plummeted over 115 points.

I had no idea what happened. I called them in tears, sobbing and crying on the phone. Only for the lady to tell me my payment didn't process (they said I entered in the wrong account number on their website and I did not). I received no alerts from them, nothing from my bank, no emails, nothing.

She said there's nothing she can do to reverse it. What's done is done. I was 35 days late and had NO idea. All over $77.

Needless to say I am absolutely devasted. I feel numb. I don't know what to do either.

Re: 😭Devastating blow to credit

Sitori — Sat, 18 May 2019 04:24:00 GMT

115 points for a 30 day???? That seems like a lot! I could see maybe 50 or so but that’s a lot. And I thought care credit didn’t report after 30?? I know years ago they didn’t report until 60. Maybe it’s changed.

You can always dispute too. I have NINE 90 day lates!! Bc of some weird mistake. Talk about crazy. It’s really horrible how little these people care. They don’t care how hard people work to keep their credit in good standing. It’s just ridiculous. I have put my bills before everything, for personal needs, even food!!! and for what????
Nothing!!!

It literally is the WORST feeling. All we can do is dispute and pray it gets reversed. Idk it makes me sick thinking about it. My fiancé is here complaining about a 30 point drop and I’m here 200 points..like are u serious!!! 😭😭😭😭

Re: 😭Devastating blow to credit

Sitori — Sat, 18 May 2019 04:28:43 GMT

@coreysw12

I feel like they won’t do anything if it wasn’t an actual mistake on their end. And they’re saying it wasn’t. It was just “bad timing”

Re: 😭Devastating blow to credit

Anonymous — Sat, 18 May 2019 05:43:11 GMT

Unfortunately yes, it’s true. A 115 point drop yesterday from one 30 day late that IS their accounting mistake, but like other people have said, they will never own up to. I will dispute dispute dispute. If I get results back from the dispute and they have denied it, I will send these people a letter every single day. This is more than “oh I messed up maybe the goodwill letter campaign will work” situation. I am PISSED. So I totally get why you’re upset. I’m still upset. I’ve been upset all day again today.

*edit
Another blow from them is the fact they reduced my CL from $7500 to $2700. I owe $2200 to them so my utilization went up to almost 100%. So they hit me with a double blow yesterday. That’s why I had such a big drop. I am so upset.

Re: 😭Devastating blow to credit

wallacecody25 — Sat, 18 May 2019 13:49:02 GMT

Wow, so sorry this happened to you. I have a very small amount of experience with FedLoan servicing that *might* help.

I consolidated my student loans with FedLoan in 2016, then lost my job and they went to default. In the beginning of 2018 I went through the student loan rehab and finished up my 9 payments in January 2019 with a collection agency. Navient was my new servicer, and I started paying them feburary 2019. During all this time fed loan was updating monthly 120 days past due. I was reluctant to dispute fed loan because I actually went through student loan rehab twice. After disputing the accounts they updated 2 out of 3 bureaus accurately.

Re: 😭Devastating blow to credit

KJinNC — Sat, 18 May 2019 16:41:35 GMT

I understand how you probably feel right now, but, from your description, it sounds like something akin to a clerical error that no human is actually defending.

Dispute it and there's a good chance it comes right off.

If not, are GWLs an option here?

One way or another, I think it will work out, since a) it doesn't sound like you really did anything wrong, b) it doesn't sound like any creditor really thinks you did anything wrong. Good luck!

Re: 😭Devastating blow to credit

rbentley — Sat, 18 May 2019 16:52:27 GMT

You stated that you got the alert from CK and saw your scores had fallen 200 points. Did you see that point loss on CK? Since you have been following the forum for some time you probably know (but in your panic forgot) that CK uses VantageScores, commonly called FAKO scores on here. They are not indicative of your true FICO scores. It is highly unlikely your actual FICO scores fell 200 points over this. Check what you actual FICO scores are. That might reduce your pain somewhat.

Good luck in pursuing getting these lates removed. We are all rooting for you.

Re: 😭Devastating blow to credit

Sitori — Sat, 18 May 2019 19:34:34 GMT

@KJ
I didn’t think I did anything wrong either. The rep said “this might be a mistake” so he talked to his supervisor who said it was a matter of one or two days that the supposed forbearance ended and the new one began. So within the time that I called in, the day before or whatever it was, was when they supposedly got reported.

Here’s what I don’t get—
If they put a retroactive forbearance on it on 5/1, that means the forbearance would have gone back the 2 or 3 months to COVER the lates from the previous months (which was the whole reason for the 90 day late report) right????? Isn’t that the entire point of RETROACTIVE??? It goes backwards???

So how could it NOT be taken off, if they approved the retroaxtice forbearance and my account is current without me even paying one dollar??

It’s the most confusing weird system ever

Re: 😭Devastating blow to credit

Sitori — Sat, 18 May 2019 19:39:51 GMT

@rbentley

You know what. I was thinking that. I don’t have the monitoring turned on from myFICO but I have the fico score 8 on my discover account and I think also on my cap1. I know Wells Fargo has one but not sure if it’s 8 or 9. BUT I see no changes yet on them, does that mean it hasn’t hit yet???

I’m freaking out like, maybe I should apply for stuff right now while I have the chance before it all hits.

Why would it show on my CK and not any other monitoring system?

Re: 😭Devastating blow to credit

KJinNC — Sat, 18 May 2019 19:46:27 GMT

Try not to panic, "freak out" or anything along those lines! I know it can be easier to say that than to do it.

I really can't imagine them defending a dispute, based on what you've said.

So once this does show up on your credit reports, I would immediately dispute it, and it sounds like they will agree or will not defend it, so it'll come off.

As for why it is on CK and not other reports - all CK does is show TU and EX the same as other services - most services like that only pull new info about once a week or in some cases once a month - so CK probably just happened to pull new info sooner for you than the others. If CK shows it, it's definitely on your TU/EX credit reports and will show up everywhere when they get around to updating. But it's ok since it'll probably come off when you dispute, if not sooner (maybe you could call and ask if they can take it off while you're talking - basically a "goodwill" phone call).

Re: 😭Devastating blow to credit

Sitori — Sat, 18 May 2019 20:56:43 GMT

OMG now my care credit limit dropped from $8500 to $600.
Omg I am dead.
There goes my 3000$ dental work I needed done. Just kill me

Re: 😭Devastating blow to credit

Sitori — Sun, 19 May 2019 02:40:24 GMT

Yes FEDLOAN defended it and said they couldn’t do anything about it.

I’ve read they won’t do anything and they aren’t allowed to do any goodwill removals.

My last chance is just with the CB’s and hope they do something.

Just checked my fico 8, down 152points 😭
It’s now 520. I can kiss getting a car goodbye, and I thought my 675 score was bad LOL . 🤦🏻‍♀️

Re: 😭Devastating blow to credit

Anonymous — Sun, 19 May 2019 05:40:07 GMT

I'm so sorry that we even have to have a discussion about this. I'm still so upset as well. Care Credit dropped mine from $7500 to what I owed them, which is $2200. So my utilization went to almost 100%. I am so devastated, I don't even know what to do either. You and I are dealing with this together....

Re: 😭Devastating blow to credit

Anonymous — Sun, 19 May 2019 21:15:22 GMT

If you were late and the received a foreberance even if it was retroactive they still count as late payments. Many people have unfortunately been caught in that. It sound like you have a lot of student loan accounts. It would be a good idea to consolidate those loans so that instead of getting dinged nine times you only get for one or two accounts.

Re: 😭Devastating blow to credit

sjt — Wed, 22 May 2019 21:59:21 GMT

I would call and write for a goodwill adjustment. Its a reasonable request. Also, contact the creditors and see if you can get the CL restored. Lets them know what happened.