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FICO Score & Considering Updating Missed BK Accounts

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Established Contributor

FICO Score & Considering Updating Missed BK Accounts

Hi,

 

We are approximately 60 days from closing on our forever home and I noticed that some of my student loans that were included in a Chap 7 BK are not identified as such on my Experian & TransUnion reports.  YIKES!.  I can't believe I missed this!

 

My FICO scores are in the 700s and I want to keep them there so I'm not sure if it will make sense for me to update this information before closing.  The only baddie is the BK from 2013.  The loans are currently in deferment.

 

How will this affect my scores if I submit the discharge documentation to the EXP & TU to update accordingly? 

 

Thanks for your help!!

7 REPLIES 7
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Community Leader
Super Contributor

Re: FICO Score & Considering Updating Missed BK Accounts

Im confused. You said your SL were IIB, but then said they were currently in deferment. Which is it, because they can't be both.

They either were discharged completely and included on the petition, or they weren't, and you're currently just in deferment and not paying on them.

My rebuild worked for me, but won't necessarily work for you!
BK7 D/C- 08/2013
Message 2 of 8
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Established Contributor

Re: FICO Score & Considering Updating Missed BK Accounts

 
Message 3 of 8
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Established Contributor

Re: FICO Score & Considering Updating Missed BK Accounts


@pizza1 wrote:
Im confused. You said your SL were IIB, but then said they were currently in deferment. Which is it, because they can't be both.

They either were discharged completely and included on the petition, or they weren't, and you're currently just in deferment and not paying on them.

Sorry to confuse you.  The student loans were IIB, but they were NOT updated on my credit reports and I've been paying them!  I have no idea how I missed this, but I did.

 

Hence, they are showing as OPEN, GOOD accounts on my credit reports.  So, I'm wondering if I should submit the BK documentation and have them changed to IIB.  If I do this, I am thinking that it would hurt my score because they're reporting as GOOD accounts.  However, I'm not sure.  Therefore, I want some solid feedback on what could possibly happen if I made this change.


Again, sorry to confuse you!

Message 4 of 8
Valued Contributor

Re: FICO Score & Considering Updating Missed BK Accounts

Yes, if the loans are updated from current paid on time to IIB it will hurt your score.

Message 5 of 8
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Regular Contributor

Re: FICO Score & Considering Updating Missed BK Accounts

Do NOT try to update your student loans to IIB. You will go from a positive account to a negative one, and it will drop your scores.

Student loans are NOT discharged in a bk, (unless you had a separate hardship proven) doesn't matter what your CR says.

Keep the positive account(s) and be thankful that they didn't change the account status!
Chapter 7 DC 10/23/18
Starting FICO 8 11/22/18

Current FICO 8 3/28/20

GOAL 680 by 12/20
Current FICO 9 3/28/20

Student loans and car payments reporting positive


Message 6 of 8
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Established Contributor

Re: FICO Score & Considering Updating Missed BK Accounts


@Morpho wrote:

Yes, if the loans are updated from current paid on time to IIB it will hurt your score.


Exactly what I thought!  Thanks for responding and sharing.

Message 7 of 8
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Established Contributor

Re: FICO Score & Considering Updating Missed BK Accounts


@Kathyups wrote:
Do NOT try to update your student loans to IIB. You will go from a positive account to a negative one, and it will drop your scores.

Student loans are NOT discharged in a bk, (unless you had a separate hardship proven) doesn't matter what your CR says.

Keep the positive account(s) and be thankful that they didn't change the account status!

My student loans were discharged due to a proven hardship, but only my Equifax report got updated with the IIB for some reason.

 

And you confirmed what I thought that I should leave them alone because they're showing as positive accounts.

 

Thanks for responding & sharing your knowledge.

Message 8 of 8
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