Student Loans Questions...

[Charmante]

So, I have 5 Student Loans that I let absolutely default. Went 8 YEARS without paying.

I rehabilitated them successfully now.

They are about to reappear on my credit as NEVER LATE and over 10 YEARS old...

This should greatly increase my credit, right?

Cause my credit is fairly thin and needs these 10 Year Old accounts (I think?)

Currently I have 3 older accounts (1 is 2 years old, 1 is 3 years old, 1 is 4 years old) and the other 4 are only 6 months old...

These will all be maxed out loans (I've never made a payment until I rehabbed).

But I'm hoping it will still RAISE my scores due to adding 5 Installment Loans of 10+ Years Old...?

Thanks everyone!!!

[ccquest]

How have they been showing this whole time?

If they have been completely missing this whole time, I'd definitely be inclined to think your score will shoot up with the age going up significantly, but if you already have installment loans then you might not get as much of a bonus because you have a good mix already.

[Charmante]

They haven't been showing whatsoever. They had aged off about 2 years ago.

Only have one Installment and it's BRAND NEW (2 Months old).

These student loans will be nearly double the age of my oldest account, nearly 3X really.

[Anonymous]

This happened to me and my scores jumped only a little (it's hard to know if they had a really good impact since I have other issues going on like a BK and recent accounts/inquiries). For vantage scores, they shot up into the 700s, Fico didn't move too much. Also: if your balances are high on each loan, that can have a negative impact on your scores. 

not to disappoint you, just keep your hopes within reason :-) if you have no other derogs, you might be pleasantly surprised!! 

also, while I completed my rehab in March, they didn't show on my CR until end of May. So be patient. 

[Charmante]

Hell, I may not WANT them to show! If they don't raise my scores. Lol!

[Anonymous]

---

@Charmante wrote:

Hell, I may not WANT them to show! If they don't raise my scores. Lol!

---

Lol...I'm right there with you on this. 

I defaulted on ancient student loans (12yrs + old). Currently in rehab and just like you my defaulted student loans have aged off my report so it's not showing. 

I'm curious to see what happens when they report positive and current in November. My file is ultra thin. 5mths and just one CC. No baddies. 

Hopefully it would be a big boost. But I worry Abt having that $35k in loans on my report.

 Well good luck to us!

Pls update us on how it reports.   

[ccquest]

I haven't really noticed the *volume* of my loans being a big negative for me. All together it's right around $140k for student loans and my car and prior to my app spree all my F8s were above 800.

Butttt, it will definitely affect any DTI calculations that a creditor may run too.

[Charmante]

And my situation is weird, I personally don't work, I am taken care of by my partner. I'm a Stay at Home Husband lolol and so I have $0 income, technically, and so my loans are structured NOT to have a payment...

So my balance will ALWAYS be Maxed Out...

I would pay a little each month out of my spending money, but I couldn't spare more than maybe $200 or $300 and with the interest it would BARELY move!!!

[Anonymous]

---

@ccquest wrote:
I haven't really noticed the *volume* of my loans being a big negative for me. All together it's right around $140k for student loans and my car and prior to my app spree all my F8s were above 800.

Butttt, it will definitely affect any DTI calculations that a creditor may run too.

---

"Volume" indeed! Lol

Well If that's the case, perhaps it would be a positive for my profile. Here's to hoping! 🤞