I have been told many times, by many sources that my credit will never improve because of my defaulted loan. Recently, I've heard otherwise. Do you know of a website or any other source that explains this?
I've been paying off the student loans for quite some time now with no change in my credit report.
I used to dream of owning my own business, but threw the idea out the window after the loan ordeal. Now, I'm wondering if I still might have a chance.
I don't know if it matters, but I calculate that it won't be paid off for 15 years or so due to the fee's. (I have more fee's than loan at this point)
Any info would be appreciated.
2007-11-29 15:54:22 · 7 answers · asked by Wendy B 5 in Business & Finance ➔ Credit
Not forever. It'll be on your credit for 7 years. You can always work your credit back up. Give yourself about a year of paying on time and you will be amazed how far your credit will go.
It's never too late. You just have to get on top and stay on top.
2007-11-29 15:59:29 · answer #1 · answered by Kimber 3 · 0⤊ 0⤋
Just pay back your loan as fast as you can. When you are debt free and able to save your money (maybe for the business you want to start), you really won't care about your credit score. Get motivated!
Develop a strict written budget with no thrills. No more eating out, watching movies, or shopping sprees. If you get bored, borrow a book from the library. Shred your credit cards and pay cash for everything. Considering selling some of your stuff and getting a second, part-time job. The hard work and sacrifice is guaranteed to pay off.
2007-11-29 16:04:47 · answer #2 · answered by Debt Slayer 4 · 0⤊ 0⤋
Work two or more jobs to get it paid down so you don't get more fees. It will be on your credit report until it is paid off or 7 years from the default. Wait until you are out of debt and save some money before considering starting a business.
2007-11-29 16:02:48 · answer #3 · answered by shipwreck 7 · 0⤊ 0⤋
Defaulting on a loan is going to hit your credit pretty hard! It will remain on your credit for seven years!
This website has a ggod section called--how credit scoring works.
I've seen this site here before and it has good info. i think a default makes your score go down by 50 to 100 points or so, but go here and read up on it for sure.
I did try disputing negative info on my report like this guy says and it worked!
2007-11-29 16:23:06 · answer #4 · answered by Bill D 1 · 0⤊ 0⤋
Not Forever. Once you get your head above water, you can begin building your credit back up.
If you file for bankruptcy it will only count against you for 7 years and after that you can begin building your credit.
You need to explore your options and decide what will produce the best outcome for you.
Oprah's website has a section on debt, maybe there are answers for you there.
2007-11-29 16:39:46 · answer #5 · answered by Spoonfull of Sugar 4 · 0⤊ 0⤋
No, but it certainly won't help. Most bad items on a credit report go away after seven years.
2007-11-29 16:22:15 · answer #6 · answered by Anonymous · 0⤊ 0⤋
You can erase all debt EXCEPT student loans. It follows you for life - until you pay it.
Forget the he said, she said, stories you've heard. Make some some money and pay it off, even slowly.
2007-11-29 16:02:32 · answer #7 · answered by sofisintown 3 · 0⤊ 1⤋