Next Steps Once REHAB is completed?

[Anonymous]

I am new to this forum and grateful to have found it 😊

Most of my adult life I had 700+ scores. Luckily I was able to buy a home at 4% and older car loans at 4-5%.

In 2011 medical stuff happened and I decided to file for BK. Obviously my student loans stuck around.

For 4 years I avoided them and just didn’t care. My credit was ruined anyway ☹

I was able to get into the rehab program and my 9th / last payment will be 12/25/2018.

I understand the loan will be transferred then and the defaults removed.

What steps should I take once this happens to make sure the defaults are removed and to get into the best position to start building?

[Anonymous]

When you complete the program they will report to the credit bureau that the loan is no longer in default, but previous late payments will still be recorded on the credit file.  To rebuild credit depending on your credit score, try either capital one or discover. If you do nto qualify for their unsecured then get a secured card from them instead.    I took the same route when I had a bankruptcy around the same time as you and now i have a 700 plus credit score  

[Anonymous]

Sometimes the lates are removed in rehab, sometimes people dispute to have them removed but if that happens cont yourself lucky. They often happen but it's not guaranteed in the rehab. Regardless, you might get a new tradeline because you get a new servicer. Your credit history length will be preserved. Getting rebuilder credit cards will help your score too. The Capital One and Discover secured mentioned eventually graduate to a regular card.

[pgtackle2003]

Just to give you an idea, as I just completed rehab 2 months ago. I had 6 accounts that were in default for all my student loans. Once I completed rehab all 6 of these accounts were delete. However, the original loan account I had, is still on my report listed as closed/transferred and has the past history of 90/120 day late payments. I have tried to dispute this account but it remains as 'accurate' (which is technically true)

[Anonymous]

Pgtackle2003: Congrats on your rehab!
What loan servicers were the tradelines, before and after?

[pgtackle2003]

I actually had the same both before and after, which is Great Lakes. Great Lakes does seem to have great customer service, they are very nice. However, they are unwilling to budge on removing the old late payments. I have tried both GW request and dispute through CRA's but neither is working so far.

[pgtackle2003]

To add to what Sabii said is absolutely accurate. My new tradline from Great Lakes is dated back to 2011, so this helps my AAoA. I also did exactly as he said and got a Capital One Platinum and Discover IT secured card about 10 months ago. I have went from FICO8 of 583 in January to a FICO8 of 653 today. I know how frustratinly slow the process can seem but keep making those rehab payments and it will work out in the end