Ugh, this is a real blow. I put my student loans in deferment for the first three months of the year, so I can use the money to pay down some credit, esp. since my student loan payment went up $200+ this year. This morning I get the alert from Credit Karma. Navient reported to Equifax that my loans are in deferment and that $1100 in interest has accrued. I have searched the archives on this subject, but not much there. Does anyone have a sense if this will also hit Fico in the same way and if the score can be recovered once the deferment ends in April? Ugh. Ugh. Ugh. That drop represents all the progress of last year. Just devastating.
I don't think it will affect FICO at all honestly but I don't know enough about student loans and their reporting. If you would please post what does actually happen when you get your next set of FICO scores.
Vantage has some squirrley things as you suggest, don't worry about what VantageScore does, it's used incredibly rarely for anything we're aware of.
You may want to edit your title to reflect the fact it's Vantage
Thanks! Have been searching around some more and it seems people have experienced a deferment/forebearance effecting their Fico scores as well. Will follow up with what happens with mine. Sigh. Didn't even think about how a deferment would effect my score. Sigh.
Please let us know what you find out, because I was reading this:
Will It Affect Credit Score?
One of the common misconceptions is that using deferment or forbearance will have a negative effect on your credit score. It will not.
Student loan deferment and forbearance will be noted in your credit reports, and neither will hurt your overall credit score.
However, your credit score will be affected if you are late or miss a payment prior to deferment or forbearance approval.
So far no hit to my Fico scores. The deferment was reported to Equifax and while I lost 57 points from my Vantage Equifax score, there was no Equifax Fico drop. The deferment seems to have been reported to Transunion as well, but while there was also a 50-some odd drop in points to my Transunion Vantage score, Transunion Fico seems to only know that my student loan accrued interest and there was no score hit there. The deferment hasn't yet been reported to Experian--Vantage or Fico, so no hit to either score, but on the Experian site, the account is listed as a Closed/Paid account. Will continue to keep you posted on any changes. But to be clear, the only effect thus far is a loss of over 50 points from my Vantage Equifax and Transunion scores. No hit to Ficos. I'm breathing a little easier.