No way!

[mamahearts]

I’m gonna cry!

I’ve been working to improve my credit for the past 5 years. In 2012 I made a huge payment on my student loans (4 separate accounts). That was enough to pay over 5 years of monthly installments. Every month we’d open that bill and it said $0 due.  We had to travel in June for a wedding and my husband's training for a new job.  So things have been hectic so I haven't even looked at the notice for I'm guessing the past 3 or 4 months.  I was expecting to start paying again in the fall. 

We just pre-qualified this week for Cap One Auto Nav for a car loan. But I checked the credit report again last night  just to make sure everything looks good before we start car shopping only to see a 90 day late on student loans! Last month it reported on time so I thought it was fine.  My FICO Experian score plummeted.  Up until this point I had NO lates on student loans or credit cards.  Only an old collection account that I was going to ask for PFD. 

Will it do me any good to ask Iowa Student loan to remove the lates if I explain the situation? I have set up a payment for next week to pay the past due and current amount of my student loan and also set up auto-pay going forward. I can’t believe this.  I don't know what to do anymore.

[Anonymous]

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@mamahearts wrote:

I’m gonna cry!

I’ve been working to improve my credit for the past 5 years. In 2012 I made a huge payment on my student loans (4 separate accounts). That was enough to pay over 5 years of monthly installments. Every month we’d open that bill and it said $0 due.  We had to travel in June for a wedding and my husband's training for a new job.  So things have been hectic so I haven't even looked at the notice for I'm guessing the past 3 or 4 months.  I was expecting to start paying again in the fall. 

We just pre-qualified this week for Cap One Auto Nav for a car loan. But I checked the credit report again last night  just to make sure everything looks good before we start car shopping only to see a 90 day late on student loans! Last month it reported on time so I thought it was fine.  My FICO Experian score plummeted.  Up until this point I had NO lates on student loans or credit cards.  Only an old collection account that I was going to ask for PFD. 

Will it do me any good to ask Iowa Student loan to remove the lates if I explain the situation? I have set up a payment for next week to pay the past due and current amount of my student loan and also set up auto-pay going forward. I can’t believe this.  I don't know what to do anymore.

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That really sucks.  You can try to get them to do a goodwill removal but I doubt they will do it.  The student loan folks tend to lean on some guidance they say they have received from the department of ed on how they are supposed to report accurately.  The answer I recieved on a 60 day late for a student loan was that they could not remove it because that would be unfair to others and would result in them reporting inaccurately.  The 90 day late will hirt you for a while but like any negative the impact will diminish with time.  If you can wait I would wait for 6 months before you go after that new car.  I would also go with a credit union over Capone, I was able to refinance my car with my credit union for half of what Capone gave me and I have read many stories like that here.  They tend to have good rates for perfect credit but it seems those with dings end up paying a couple of points more than the good credit unions offer.   Sorry this happened, its tough but you can overcome this and rebuild so don't give up.  With credit time heals all wounds.

[mamahearts]

Thanks for your advice. We can most definitely wait another 6 months as we pay down the credit cards balances, start bringing down the student loan balance and pay the collection account off. I was just worried that we'd be back at square one with the 90 day late. The suckiest part of it is we didn't get hot with a 30 day late or a 60 day late. The credit report showed as current for April, May and June. If we had seen that 30 day hit there's no way we would've let it get to 90 days. I'm hoping that could be grounds for a dispute and maybe we can get that reduced if not removed.