ACS, lates, score increase question

[MzDandylion0527]

This is for the student loan gurus:

I currently have three student loans reporting as late on my credit report (1 30 days, 2 60 days). I spoke with ACS and they have agreed to a "verbal deferment" until my classes start (8/27). My question is, how far do the lates pull my score down in the first place and with them doing the deferment and making them current, how far should it raise them? Plus, how long does it take to see the changes?

[Tazman81]

#1:  No such thing as a verbal deferment.  Get it in writing.  On most all of the companies websites it makes it clear that until all necessary signed documents are received, then you are NOT in deferrment or forebearance.  This may not be to much of an issue for you right now since the date is right around the corner, but we have seen way too many times when people think their accounts are in deferrment or forebearance only to find major hits to their credit report.

#2:  As to your question, you likely will not see a major immediate change to your credit score.  Unfortunately the damage is done, and is going to take the passing of time with a good payment history for you to see your score start to increase.  Don't be discouraged though.  Lates will not hurt your report forever.  You will have to start replacing the bad history with good history and that will help your score.

Recommendation:  Make sure your school reports you to the National Clearing House saying that you are a current student and you are enrolled a least half time.  Then have ACS validate this information so that you can be on an inschool deferrment (if these are federal loans).  Ask for a confirmation letter from ACS that your loans have moved back into deferrment. (or sometimes you can see this when you view your account online.  that print out is usually good enough as well).