topic Loans Rehab. No change in score? in Student Loans

Loans Rehab. No change in score?

PleioneG — Wed, 08 Jan 2014 20:23:32 GMT

After a long process, I was able to finally rehab my husband's loans. His defaulted loans were deleted and now is repaying his loan to Sallie Mae instead of a debt collector. It improved his credit a fair bit but not the amount I was hoping for. I was under the impression that when you finish a rehab and get a new loan, they would make it appear as though payments were being made since the date it opened. Yet on his report, it just looks like that the account was opened on a certain date but no payments were made until recently. Needless to say, it didn't boost his credit up any. Yeah, it's now his oldest account, but I thought that it would boost his credit score. It hasn't budged it an inch. It remains the same score number it was when I last checked after his default status loans were removed. Am I missing something?

Re: Loans Rehab. No change in score?

scvbd99 — Wed, 08 Jan 2014 23:37:48 GMT

it all depends on the agency servicing your loan while you're in default.

All they are *required* to do is update your credit report to reflect no more default status. Any other accurate reporting information can stay.

Depending on the agency, they will sometimes do more, though.

Sometimes, the agency that you rehab with will go in and delete their entire tradeline when the new agency takes over the rehabbed loan. Sometimes the agency that you rehab with will go in and make it look like you've always paid on time before it got sold to the new agency. Sometimes, the agency that you rehab with will go in and remove the default notations, but leave in 30/60/90/120/150/180 day late payments.

The new loan should be a new tradeline, though, unless it was purchased by the same agency that you rehabbed with. Like one of mine was rehabbed with NELA, and then picked up by its own parent company, Sallie Mae.

Re: Loans Rehab. No change in score?

Anonymous — Thu, 09 Jan 2014 15:45:29 GMT

It usually takes about 60 days to reflect on your credit score. I just finished I my score bumped from 578 to 660 but it does take a while. Patience..

Re: Loans Rehab. No change in score?

PleioneG — Thu, 09 Jan 2014 18:47:29 GMT

It shows as a new trade line started in January that's 10 years old. No lates or anything but the date opened is in 2001.They deleted all the defaulted loans.

Guess I'll just wait and see.