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Bump after Direct Loan Consolidation?

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Tomcatant9
New Member

Re: Bump after Direct Loan Consolidation?

I'm a little confused... If your loans in default still have a balance they are still active. The 7 year rule applies to account that are paid in full. Even if you get them out of default that negative information will still report. I just went through this with a charge off a while back. Because it was paid in full it dropped off my credit report at 7 years from my first 30 day late payment. It raised my credit score by almost 100 points.
EX 779 EQ 814 TU 782
Message 11 of 17
Mauveboy
Valued Member

Re: Bump after Direct Loan Consolidation?

The defaulted loans are paid in full now through the direct loan consolidation so they are no longer active. I actually attempted a letter of goodwill to ECMC to see if they would remove the default status early and they told me they couldn't remove it until 7 years after the date they paid the default through insurance on 9/28/06. After that it should only report the day that it was opened, the day that it was closed, the high balance and that it was a  paid through consolidation for I believe 10 years from the paid in full date. At this point I'm not sure if I'll be able to tell if there will be a significant bump. I recently got approved for a car loan and I had my girlfriend add me as an authorized user on a major credit card she has that is 15 years old that she pays off monthly. Once these events and a possible FHA mortgage this Summer hit the credit bureaus something like 7 year old defaults falling off in September might not be significant enough to warrant a huge bump.

Message 12 of 17
ecalmese
Regular Contributor

Re: Bump after Direct Loan Consolidation?

Keep me posted on your score increase, I did the exact same thing because I'm on the same situation so I'm hoping to hear good things from you!
Started January 2013 in the lower 500s
Scores (as of January 2014) Equifax 630 | Experian 646 | Transunion 674
With the help of you all; I am working my way to the 700 club!
Message 13 of 17
Sonic98
New Contributor

Re: Bump after Direct Loan Consolidation?

I think that's why a lot of people get so frustrated with trying to fix thier credit and end up just waiting a lot of marks in their report out. Sometimes it's such a headache to get  a negative account back in the positive.  It's the same way with banks and lenders. You can have years of good history with them, then you have a few months of struggles, and it's like everything changes with them.

Message 14 of 17
ecalmese
Regular Contributor

Re: Bump after Direct Loan Consolidation?


@Sonic98 wrote:

I think that's why a lot of people get so frustrated with trying to fix thier credit and end up just waiting a lot of marks in their report out. Sometimes it's such a headache to get  a negative account back in the positive.  It's the same way with banks and lenders. You can have years of good history with them, then you have a few months of struggles, and it's like everything changes with them.


i 100% agree!!!!!

Started January 2013 in the lower 500s
Scores (as of January 2014) Equifax 630 | Experian 646 | Transunion 674
With the help of you all; I am working my way to the 700 club!
Message 15 of 17
ecalmese
Regular Contributor

Re: Bump after Direct Loan Consolidation?


@Mauveboy wrote:

I'm hoping for a bump after consolidation but I'm not sure how much. EQU=636 and TU=663 right now. My AOA is 17 years. I currently have 6 tradelines, all student loans. 2 student loan accounts are closed. One for $475 is pay as agreed and 3 accounts for a total $6,427.73 are in default and 120+ days delinquent but the date of default goes back ti 2006. My question is, what type of bump am I realistically looking at? Consolidation should give me 7 tradelines dating back 18 years, the delinquencies on my report are all from 6 years ago and the loan will show no late payments. I'm thinking 640-645 EQU and maybe as high as 700 TU? Will the delinquencies drop off 7 years from DoD or 7 years from pay off date?


did you see a score increase yet?

Started January 2013 in the lower 500s
Scores (as of January 2014) Equifax 630 | Experian 646 | Transunion 674
With the help of you all; I am working my way to the 700 club!
Message 16 of 17
Mauveboy
Valued Member

Re: Bump after Direct Loan Consolidation?

Just as an update, the original defaults on my student loans have now fallen off my credit reports. I've since had those loans consolidated and opened up a car loan so I now have a total of 5 trade lines and my AOA stayed at 17 years. With all that being said, my EQU was at 636 when I started this process in March  and is now at 660 for a 24 point bump. My TU score was at 663 and is now at 690 for a 27 point bump. Consolidation and patience have really paid off. I'll be buying a house within the next month. Direct loan Consolodation was the best move I've ever made financially.

Message 17 of 17
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