What should I do?

[DaniBananiie]

In my early twenties, I was careless with my student loan payments. My loans them went into default. I rehabbed my loans, and my score is now in the upper 600s, the late payments from the original loan are showing on my credit report. Should I dispute them? I'm trying to finance a new Terrain at the end of the year, and I'm shooting for the low APR. I need some help guys!

[SCF]

The original lender is allowed to continue to report the late payments that lead up to your default, they are not required to remove them, although some lenders do.  You would be disputing correct information.  You can send a goodwill letter to the lender asking for an adjustment of that reporting, or you could just wait for them to fall off and focus on building positive credit history in the meantime.

[PresidentPatton]

Dani,

Just out of curiosity, what was your scores before the default was removed?

[DaniBananiie]

Patton,

Honestly it was like low 500s. Thanks for the reply SCF. I could choke my younger self. Lol

[PresidentPatton]

That is incredible 100-150 point gain after rehab! I sure hope I get that kind of boost, did you do anything else to your credit between score changes? I have been working diligently to get other baddies cleaned up over the past two months, at this point I have paid or had removed around 8 different collections; hoping between this and finishing the rehab program in June will get me where I need to be. Thanks for your reply!

[DaniBananiie]

Patton,

Once Sallie Mae (who was my original loan owner) bought back my loans, I started paying double the amount that was due every month. Capital One also issued me a credit card with a CL of $750, but then a month later raised it to $1500. I use my card in place of my debit card, and pay off the balance completely before it's due. I just wish I could've had the late payments removed, because then I would be in the 700s. :-/

[Wanka77]

Dani,

I'm currently in the same boat as you are.  The only thing that could help is by sending GW letters to the OC in the hopes that they will help us.  However, before you send out any GW letters, try to find out a good/solid contact within the OC so your chances of getting your marks removed increrase.  Good Luck ........  What ever you do - DO NOT - use letters found online.  Write yourself the letter and make sure it's specific to your situation and from the bottom of your heart.

[DaniBananiie]

Thank you Wanka!

[Melanie220]

I'm in a situation similar to this. I had two student loans. One with Citi and one with Sallie. Deferred both accounts. In July of 2011 Citibank was sold to Sallie Mae. So now I have two loans with Sallie. Well I guess when citi sold my loan they didn't show as deferred so Sallie is reporting 120 days late for about 6 months. The crazy part about it is that my loan that was with Sallie was already deferred so even when they bought the loan from citi common sense would have been to add that to deferment as well but NO! So now I'm waiting for the advocates to get back to me because this is killing my score.

[bahbahd]

 Your best course of action would be to get confirmation in writing from Citibank on the status of your loan when they transferred it to SM. You want proof it was in deferment, the date the deferment started and the date the deferment was meant to end. You can then take this to SM and present your position that the loan should have remained in deferment after they began servicing the loan.