Student loan late payments are hurting my credit

[Anonymous]

Hi Fico Team:

I am currently trying to fix my score, I'm currently at a 613 FICO score. I have no collections, no bankruptcy. The only issue I have is a late payments from my student loans, I have become current in all accounts yet still have the late payments dragging my score down (latest was 120 days). What are suggestions on how to bring my score up? I have credit cards that I have been using to do this but really need to do something about the student loans. What have you guys done to work around this? 

[Anonymous]

Hopefully one of the experts will weigh in. I have sl lates too and it seems, if they are accurate, you'll have to wait for them to fall off. I also suggest timing your positives so that once lates drop off you'll have no new lates, good account ages and low utilization & no inquiries. 

[Anonymous]

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@Anonymous wrote:

Hi Fico Team:

I am currently trying to fix my score, I'm currently at a 613 FICO score. I have no collections, no bankruptcy. The only issue I have is a late payments from my student loans, I have become current in all accounts yet still have the late payments dragging my score down (latest was 120 days). What are suggestions on how to bring my score up? I have credit cards that I have been using to do this but really need to do something about the student loans. What have you guys done to work around this? 

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To my knowledge, there's nothing you can do about late SL payments reported to the CBs. It was real, it happened, so it was reported - now it's just a waiting game for them to fall off your report. All you can really do to improve your scores is tweak non-SL aspects of credit: inquiries, utilization, CC pay-off methos (AZEO), credit mix, AAoA, etc.

You mentioned that you've been using CCs to bring your score up. May I ask what things have you been doing?

[susantrexel]

I have 150 day late payments.  I had planned to do a strategic default but ended up not going that route. I called them got on a plan and got caught up. 

These lates really affect my credit because even though I only have 2 loan providers, Mohela and Navient, each time I took out a loan per semester it counts as a seperate loan. So late pays to them show up as like 13 accounts that are 150 days late, even though it is really 2 payments and 2 loans.

I have been able to get my score over 700, just by paying on time and opening up new credit accounts and doing the AZEO method (all accounts but 0). 

[Anonymous]

Welcome to myFico, and congratulations on working to rebuild your credit! Sorry to hear about the late payment hits to your credit.

Unfortunately for borrowers, late payments are late payments. If they are being accurately reported, I'm not aware of any mechanism (law, rule, etc) that can/will force a CRA to remove them. Various lenders may have their own programs that help borrowers avoid default or get current, but I have not heard of those programs doing away with the reporting of late payments. Like any other derogatory, you can request early exclusion when eligible, but aside from that, only time heals. As always, I will stand corrected and welcome any contrary information that may benefit any of us with student loans. 

Good luck with your rebuild!

[Anonymous]

I have tried and tried early exclusion with TU on student loan lates they say they do not EE lates only derogatories

[Anonymous]

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@Anonymous wrote:

I have tried and tried early exclusion with TU on student loan lates they say they do not EE lates only derogatories

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I believe you are correct. They will only do EE for removing derog TLs early.

[Anonymous]

However I am curious if the account was CLOSED it would then be considered an old derogatory then delete but that would delete the account, because the sup I spoke with said yeah we can't do anything about these lates because they are open accounts, I was so mad though I didn't ask her to elaborate, in my particular case it won't do any good because I'm not giving up what would be 10 plus years of age x4 plus 10 more potential years of positive reporting just to remove some lates a few months early

[calyx]

The issue with SL's is that they're covered by an additional law (Higher Education Act or HEA) which mandates reporting above and beyond the FCRA.

And a 120/150d is a MAJOR derog that will have a big impact for the entire 7y stay on your credit report.
The best you can do is pepper the student loan servicer with goodwill letters (check the saturation technique in the Rebuilding forum).    By law they're not supposed to, but some servicers have been known to bend the rules a hair.    I had a servicer remove an entire defaulted tradeline for me, while others can't get so much as a 30d late removed, so YMMV.

I am a pro-groveler, but I also ran across many sympathetic ears at my servicer.  You never know, so keep trying.