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Forbearance to Repayment

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Anonymous
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Forbearance to Repayment

Has anyone seen or has any DP on if (if any) SLs going from forbearance to repayment affect your credit score?

It shows the only debt I have on Experian as my personal loan and auto loan. I’m afraid when they become open (currently marked closed) when I start to repay my balance to the original amount is going to be above 100%. Is it already factored in or would it not matter?

I’ve never missed a payment and can afford my IBR easily. My current DTI is 12% and with the SL payments it’ll be 19% so I’m still under 30% by a large sum so I think I’ll be ok. Just not sure if change of status will hurt.

Further DP:

Revolving Util 5%
Income $80k
5 inquiries
3 baddies - one from 2012 and two from 2016.
22 active accounts
FICO -8 720
TU - 730
EQ - 728
Additional FICO Scores range from 693-763
Message 1 of 3
2 REPLIES 2
Anonymous
Not applicable

Re: Forbearance to Repayment

I’m not sure I have the best answer for you but I know for my student loans they did not appear in my credit until I graduated college. During the months I did a forebearance the balances were over 100% and calculated in my score. I never noticed any of the loans showing closed during that period. The high balances did not affect my score much in comparison to other factors in my report.
Message 2 of 3
Anonymous
Not applicable

Re: Forbearance to Repayment

I don't know how it will affect your score but my experience is the same as brownsugav in that while my loans were in forbearance or deferment they never reported as closed. In fact, the months where I was in deferment are blank on my credit report.
Keep in mind that your scores are already good. I know with student loans at over 100% you can still get over 750 credit score and when the baddies come off (2012? You could always try to have it removed up to 6 months early with early exclusion on TU) potentially near 800. I wouldn't worry about it too much.
One thing I did notice is you were on forbearance while you were on a IBR. Are you planning on repaying the whole loan or forgiveness? If you are planning on any forgiveness, I recommend avoiding any further forbearance or deferment even while in school (you'll need to complete an in-school deferment waiver) because all those payments will count toward the time needed for forgiveness. Hope this helps. :-)
Message 3 of 3
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