Approved for REPAYE, credit score dropped?!?!

[Anonymous]

I got approved through the dept of ed for the REPAYE program, it makes my payments $0. That’s all great and fine.

Navient posted $60 interest on my loan ($21,000) now my score dropped 40 points, even though my utilization of credit dropped from 91% to 85%.

Why?

[Anonymous]

Congrats on getting the REPAY plan! You might want to ask for qualifying payment counts every 6 months to a year just to make sure you're on track for forgiveness (20-25 years). These servicers can be shady!
You said that your utilization dropped (I.e. you made a larger payment)is ... But you're making $0 payments? Did your overall utilization drop or specifically that of the student loan?
When you switch to REPAY the interest is capitalized. This can make it seem like you owe more than the original balance. This higher percentage can lower your credit score. Does that sound like what it could be?

[Anonymous]

Hi, I'm looking at your other post. Is this the same loan that started out as $12k? Then that's what the amount borrowed is even if the amount you owe now is your highest balance, $21k. I'm pretty sure that your score won't go up until you get below 100%. I am also in this position and it's one that you just have to accept your balance will keep going up and up until forgiveness. I have heard from multiple posters and family that, for example, if you're getting a mortgage, they only want to see that you're making the agreed monthly payment toward your forgiveness plan. Now, given this, I can tell you for sure that there are other ways you can improve your score. Working to lower your utilization (soft pull credit limit increase are a good start), make sure you aren't late, have good credit card history, low inquiries, etc. If you improve in the other categories, over time you can get your score to mid-700's easily. The student loans will not keep weighing down your credit score that much if you keep up everything else.

[Anonymous]

@sabii,

My overall credit utilization dropped from 91% to 85% because I made a few payments over the month on my revolving credit card account. As far as my SL, Thats the part that went up, but it seems like TU thinks that it may be because I've missed a payment, when in fact i havent missed any payments, since they are $0 now. its just the interest that's been added. 

[Anonymous]

I wish I could figure out the way to add all my info to the bottom of my profile like you have it. I've walked through credit info updates on my own, fighting with CA's, OC's, and the B's to get all the outdated baddies off there, and over the past couple months, have seen 3 different TL's for my school loans going from one servicer to another and then also finding out that a CA was attempting to collect a debt they've reported on my TU report since they bought in 2013, even though the DOFD on that one was 2005. Eesh.

Its been ALOT of upward swing as far as my scores are concerned, but the one negative thing left is this stinky school loan. I'm also trying to research if there is a way to qualify for School loan disqualification since a good majority of the loans was with DeVry University. I consolidated these loans in 2005, they started at $12k, and have now ended up at almost $21K. its killing me. 

Even with the $0 payment, this is going to happen every month until the 20years goes by? 

[Anonymous]

I'll send you a link to the two profile stuff in the morning. One is under smogasboard.

There's also Goodwill letters for lates that are not federal student loans. Or look up early exclusions if something is close to facing off. However if your score has gone to due to what you've done you're right on track. Least resort you could always do a complaint with the CFPB for the old debt with the collection agency.
Yes, there is a loan forgiveness program for defrauded students. It's being reduced and ignored by the Dept of Education sometimes though, so the sooner you can apply the better.
Overall, $21k isn't that large of a student loan; I've seen ppl with much larger loans on their credit reports and good scores. No, your score will not change as extreme as month to month, but over time the best that I can explain it is you will hit a point where your score can't go any higher due to your loan. However, if you work to improve the other stuff, it won't matter. You can still get a really good score.

[Anonymous]

I actually just changed my signature a week ago because I couldn't figure it out either! Lol! I saw someone else ask and went to these links:
Badges for Your Signature
https://ficoforums.myfico.com/t5/SmorgasBoard/Badges-for-Your-Signature/m-p/5345819#M65611

Here is a list of color names that you can use:
http://preformattedtext.weebly.com/html-colors.html
Just replace the "color" in the line of code with whatever color you want.

THIS IS HOW YOU ADD CREDIT CARD PICS TO YOUR PROFILE
https://ficoforums.myfico.com/t5/SmorgasBoard/THIS-IS-HOW-YOU-ADD-CREDIT-CARD-PICS-TO-YOUR-PROFILE/t...
I got most my card images from other people's signatures or a Google image search.
If you need any help, people on those threads are super patient or I could try to answer your questions.

[Anonymous]

Genius! @Sabii, Thanks so much for that info.

I’m trying to find whatever excuse i can use and/or proof that DeVry was horrid in their advertising tactics. if u know anyone who may have any insight, i’m all ears.

As far as the credit cards, i’ve been afraid of even attempting to get any because of the massive amounts of annual fee/horrible interest u get when u have credit that is not quite 600 yet.

[Anonymous]

You're welcome!
You might not need to Work too hard on that...they were already sued for that and had to settle for 100 million resulting in checks to many borrowers (refund but not for the full amount). You might have one, but I don't know how accepting the check would affect loan discharge. You can read about that here:
https://www.ftc.gov/enforcement/cases-proceedings/refunds/devry-refunds-debt-forgiveness
Separately there is loan discharge that you were researching. They mention DeVry by name. Sorry to put in slightly political stuff but here is an article that talks about how DeVos is delaying those applications to roll back the Obama-era protections.
https://www.cbsnews.com/news/trumps-education-department-delays-student-loan-forgiveness/
This is key to what you are talking about because you might (I would think do) qualify for the discharge but if they hold up the process...idk, the best you can do is apply now keep making "payments" and with a little luck it will go through eventually.

I know if can feelike the best thing to do is to wait to apply for credit. However those good things that I was talking about to offset the loan cannot happen until you start rebuilding. There is an excellent thread on rebuilding from a pro. It takes you from low scores and getting secured cards, to getting better cards, etc. Looking back I'm good I got the capital one card to rebuild. My score improved on this alone.
https://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/ABCD2199-s-Eleven-Rules-to-Credit-Rebuilding...
I also ignore the interest rate. The card is only for rebuilding not to carry a balance. You only actually need to put a small charge on the card every few months and pay it off soon after. There are also places on the internet (and less organized, here) that try you what the credit score, income etc ppl have when they get approved for a card. You're not alone, and you can learn from other's successes and mistakes.
Also have you heard of the shopping cart trick? These store cards have limited uses, but if you can be responsible, one wouldn't hurt. There is no fee and the trick is used so there is no credit check.
https://www.google.com/amp/s/www.doctorofcredit.com/shopping-cart-trick-get-credit-cards-without-the...
Make sure to check the forum here to make sure that a card still uses the SCT.