Score dropped when status changed to deferred

Anonymous · ‎07-23-2008

I just deferred my student loans. They were listed as pay as agree on my credit report, when they were upaded to deferred my score dropped 35 points. Any clue why this would happen, and what can I do to fix it?

Anonymous · ‎07-23-2008

Can you paste the exact comments and status fields for us?

evansma1971 wrote:

I just deferred my student loans. They were listed as pay as agree on my credit report, when they were upaded to deferred my score dropped 35 points. Any clue why this would happen, and what can I do to fix it?

Anonymous · ‎07-25-2008

I lost 40 points when I changed my status from deferred to in repayment. Here's my scorewatch alert:

The following changes were reported for your DIRECT LOANS account:-
Past Due Amount Changed from N/A to $0

Negative Factors

The following 1 new negative factor(s) are hurting your score:

Balances are due on accounts that are past due or have derogatory indicators/remarks

Message Edited by SecondChance23 on 07-25-2008 05:21 PM

Anonymous · ‎07-25-2008

Now that I think about it does anybody know why this account dropped 40 points? Here's the details for the direct loans account:

Company/Account Name: DIRECT LOANS

Company Address/Phone: PO Box 7202, Utica, NY 135047202

Account Number: XXXX

Date Opened: 09/01/97

Last Activity: 02/01/08

Type: Installment

Rate/Status: Pays account as agreed

High Credit: $17,749

Terms: 203M

Balance: $17,749

Past Due: $0

Most Recent Date Reported: 06/01/08

Comments on Account: Student loan assigned to government

Message Edited by SecondChance23 on 07-25-2008 05:30 PM

Anonymous · ‎07-25-2008

Those comments don't indicate they are deferred- the comment looks derog-

I would call them and ask-

Michelle71 · ‎07-26-2008

Balance: $4,829 $4,904 Past due: Not Reported Not Reported Status: Pays account as agreed Pays account as agreed Last activity: 5/1/2008 5/1/2008 Terms duration: 178M Not Reported Description: Student loan
Student loan - payment deferred

This is it.. there wasn't any message stating derogatory information being reported. I don't get it.

Anonymous · ‎07-27-2008

@Anonymous wrote:
Now that I think about it does anybody know why this account dropped 40 points? Here's the details for the direct loans account:

Company/Account Name: DIRECT LOANS
Company Address/Phone: PO Box 7202, Utica, NY 135047202
Account Number: XXXX
Date Opened: 09/01/97
Last Activity: 02/01/08
Type: Installment
Rate/Status: Pays account as agreed
High Credit: $17,749
Terms: 203M
Balance: $17,749
Past Due: $0
Most Recent Date Reported: 06/01/08
Comments on Account: Student loan assigned to government

Message Edited by SecondChance23 on 07-25-2008 05:30 PM

Your problem seems to be the part where it says "Student Loan assigned to government."

In SL-speak, I'm 99% sure that means you're in default. At least, I think that's the way FICO sees it.

Student loans are only assigned to the gov when you've defaulted on them and the gov steps in to force you to pay them off, i.e., wage garnishment, account levies, property lien attachment.

ARE they in default???

Anonymous · ‎07-27-2008

No this loan has been rehabbed and ALL negative remarks were supposed to be removed. The above is from my EQ but EX is reporting this account as a "potentially negative item" and I had to request a letter from the DOE that states my "current" status...can't remember the name. I guess I need to send it to EQ as well. Should I dispute this to speed up the process?

mdstar1 · ‎07-28-2008

I know that common knowledge in this forum says to ignore FAKO advice, but...

When I play with the FAKO score simulator, it always gives me extra points for having an installment loan that is being "paid on time". My current loan status is deferred also, and the fact that no payments are being made on the account lowers my FAKO score. I guess they can't give points for timely payment, if there are no payments being made. Just IMHO.

EX 742