I had every intention of rehabilitating my student loan, but made the mistake of assuming the USDA guidelines were the same as FHA with regards to defaulted student loans reporting to caivrs. Not to mention the person I was working with at the USDA told me that having my student loan in rehab and NOT having a clear caivrs (like FHA) would be fine......NOT!
We could get an FHA loan with caivrs showing the defaulted student loan while it was in rehabilitation, but the amount we would qualify for was a LOT less than what we would qualify for with a USDA loan. Sooooooo I consolidated. I read in an old post here that the credit reporting directly by Department of Education had all the delinquencies removed after a consolidation. The delinquencies reported by any other servicer however remained which I totally expected. Has anyone else experienced this?
Since the original loan was close to $5000 in 1996 and the balance reporting now is over $11000 will the consolidation help since the utilization will be back to 100% instead of over 200%?
The credit reporting is showing 2 accounts, but it is actually one loan. Those loans are reported 7 times. One paid as agreed from 2010-2011 by department of education on equifax and transunion, 2 delinquent 12/2012-04/2013 by department of education on equifax and transunion, 2 delinquent 7/2013-04/2014 by Fed loan servicing on all three bureaus and 2 open accounts reported by department of education delinquent 5/2015-4/2017. Other than those two delinquent/defaulted accounts I only have two new secured credit cards opened last month. The annual fees put me above the 9% utilization, so once the reporting reflects the $0 balance on one card and under 9% on the second card I hope that my fico scores will get a small boost. Based on my limited credit file can anyone tell me what they think it will do to my mortgage scores?