i was irresponsible for the last 4 years and my student loan went to collections. I'm finally making decent money and I've began paying back my loan, my question is will my credit score begin to increase because i'm paying this off now on a monthly basis or will it only increase once the loan is fully paid off which will be in like the next 5 years.
2007-03-05 10:39:32 · 4 answers · asked by TinTin 2 in Business & Finance ➔ Credit
The Department of education reports monthly to the Credit Unions. My son has a student loan and there are a couple years worth of monthly payments on his.
It will take a few months of on time payments. Did you talk to the Student loan people and get a new payment plan or did you just start sending money in or what?
Whatever agreement you made with them, you need to make sure you are paying on time. If you stop working and can't pay, call them and get a hardship deferment so it does not go into default again.
Your score will start going up gradually as you continue to make on time payments. You probably won't see much of a difference for 6 to 8 months though.
2007-03-05 10:53:49 · answer #1 · answered by Faye H 6 · 1⤊ 0⤋
Depending on who the loan is through and how often they report to credit departments.Although an account in good standing while paying off will increase the credit score faster
2007-03-05 18:43:17 · answer #2 · answered by no1mom64 1 · 0⤊ 0⤋
It depends on the collection agency that holds them. If they report to the bureaus, it will help...slowly. Ask the agency if they do. What this will show is the original, balance, and the payment and what ever the new balance is, similar to an installment loan or credit card payment. But it does take time and most importantly make all payments on time!
Good luck!
2007-03-05 18:49:36 · answer #3 · answered by DNE161 1 · 0⤊ 0⤋
your credit score changes like every 3 months-the more payments you make the better your score will be
2007-03-05 18:57:12 · answer #4 · answered by Annie 5 · 1⤊ 0⤋