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Will a student loan always report negative after a missed payment?

Established Member

Will a student loan always report negative after a missed payment?

My understanding is that most negative account info falls off of your credit report after 7 years.  

 

My fiancee has a student loan.  She will be paying on this thing forever - like 10 years or something.

When she was first supposed to start paying she apparently missed a payment.  So, now the account shows up as a negative factor on her credit reports.  This missed payment was like 3 years ago.  

 

Let's say she continues to pay on time for the next 4 years, will the account still count negatively even after the missed payment is 7 prior just because the account is still active?

 

Thanks!


Starting Score (01/01/15): 592
Current Score (09/01/17): 691 (TU), 696 (EX), 704 (EQ),
Goal Score (12/30/17): 740

Message 1 of 5
4 REPLIES
Valued Member

Re: Will a student loan always report negative after a missed payment?

My understanding is that while that tradeline will still be reported since it's still open the late payment will fall off 7 years from the date of the late payment. If I'm wrong hopefully someone with more experience will correct me. Hope this helps.

Fico 8 Scores as of 10/12/16: TU 637; EQ 621; EX 685


Cap1 QS - $5300; Cap1 QS1 - $2000; Cap1 PS - $2750; Amex Everyday - $1000; Discover IT - $1000; Barclaycard - $850; BOA Part Secured - $500; Store Cards: over $10000
Message 2 of 5
Established Contributor

Re: Will a student loan always report negative after a missed payment?

It will report as a clean, positive line after 7 years 

Message 3 of 5
Established Member

Re: Will a student loan always report negative after a missed payment?

Good to know. Thanks folks!

Starting Score (01/01/15): 592
Current Score (09/01/17): 691 (TU), 696 (EX), 704 (EQ),
Goal Score (12/30/17): 740

Message 4 of 5
Highlighted
Senior Contributor

Re: Will a student loan always report negative after a missed payment?

The missed payment will fall off in 7 years but the tradeline will stay , after 2 years of no missed payments it will have little to no affect on her scoring.
Message 5 of 5