I was going to pay my loan off in cash as it is about $2,700 but decided I want to save that money for a down payment on a house and going to get a side job to pay off my student loan instead, but wondering a couple of things.
1. My loan is about 10 years+ old so If I start the rehab process it should fall off my report since it is older than 7 years correct?
2. Since these loans don't really fall off until paid off, will removing this from report(has 90 & 120 day lates) and replacing it with a new fresh loan boost my score any or is it no longer factoring in my scoring since it is so old? I notice on Credit Karma it is on my credit report page but isn't listed under my "derogatory marks" so not sure how much it is still dragging down my score.
Thanks in advance!
Yes, it is an old federal loan from Fedloan Servicing, but now on my report it looks like it went to Dept of Edu. I get my TU & EX FICO 8 scores from Discover & Experian.com but plan to pull scores for all 3 when I am ready to purchase. My FICO scores are slightly delayed though as I just got a 24pt boost on my Credit Karma FAKO scores due to my larger credit limit on my discover card so I am waiting to see what my FICO 8 scores do when they update next with my new limit.
I am leaning towards just doing the rehab too, I am hearing it goes back to when you defaulted and brings it all current and will keep my age of the account which is helpful since it is the oldest thing by a long shot on my credit report.
I am just getting out of rehab. I made my last payment in late Janurary for February which is the 9th month. I called Monday and was told the process of selling my loan started Friday 2-8. If you want I can try and update you with any updates I get.