Also will my credit score go up if I'm making payments on the loan or do have to be fully paid in order for my credit score to go up.
2007-12-16 04:51:21 · 9 answers · asked by Tarra C 1 in Business & Finance ➔ Credit
Your score might go up if you start making payments.
Not paying student loans is serious business. It can affect your ability to get a job, will cause your entire tax refund to be offset, etc.
Clearly if you couldn't pay those, no one else is going to loan you money.
2007-12-16 04:59:17 · answer #1 · answered by Anonymous · 1⤊ 0⤋
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2016-10-23 21:54:57 · answer #2 · answered by ? 3 · 0⤊ 0⤋
The only way your student loans would affect your credit score negatively is if you are not making your payments on time. All credit good or bad stays on your credit report for at least 7 years. All judgements or public records stay on for at least 10 years.
Your credit score will go up when you start making regular payments. The longer the term is that you make on time payments the better your score will be.
The two best type of loans you can have are student loans and a mortgage. Both of these types of loans you can write off all the interest on your taxes at the end of the year, and the interest rates are really low.
Therefore, continue to make regular on time payments on the student loans, take the tax break at the end of the year, and pay off any other type of credit first (eg. credit cards, car loans, etc...).
If you have any other questions don't hesitate to email me. I have been in finance for the last 10 years and would try to help any way I can.
2007-12-16 05:06:25 · answer #3 · answered by Sandy J 2 · 1⤊ 1⤋
Resign yourself to the fact that there are no quick fixes...only the passing of time will fix this situation. I'm assuming that your score is 480 as the credit reports are showing that this is a defaulted student loan....If this is accurate it cannot be pulled off your credit file. Making payments could gradually cause your score to go up a bit AND it will definitely stop your credit score from going down even further..so that's one advantage. Wish I had better news....
2007-12-16 05:11:26 · answer #4 · answered by CatDad 7 · 1⤊ 0⤋
The only way to rid those student loans is to repay them and if you make the payments on time your score will go up. Don't think that you can hide by using the statute of limitations either.
The laws regarding statutes has changed.
The statute of limitations on defaulted student loans was eliminated by the Higher Education Act. Section 484A removes all limitations and gives the Department of Education or the guaranty agency (bank or lender) the ability to file suit, enforce judgments, initiate offsets, or other actions, to collect a defaulted student loan regardless of the age of the debt. Statutes of limitation are no longer valid defenses against repayment of a student loan.
2007-12-16 06:41:26 · answer #5 · answered by Sgt Big Red 7 · 2⤊ 0⤋
You can't get it off of your credit report if it's a legitimate debt. If your rating is that low, it would normally indicate that you are in default on the loans. Your wages can be garnished for them and any tax refunds you have coming can be captured to offset the debt as well.
Only a solid repayment record of ALL of your debts will improve your credit scrore. It's going to take you several years of on-time payments to make a meaningful dent in your score. And if you you have a high debt to available credit ratio, you'll have to get them paid way down as well to make any real progress.
2007-12-16 05:16:41 · answer #6 · answered by Bostonian In MO 7 · 1⤊ 0⤋
Your score will go up when paying the debt back. The only way you can get this off of your credit is if you or an outside company disputes the items and they cannot prove that the debt is valid. I really messed up my credit and am now using Lexington Law to help to repair my credit. But if you are able to pay back the debt than definitely do so.
2007-12-16 05:34:56 · answer #7 · answered by Jose P 2 · 2⤊ 1⤋
That's a great question
2016-07-30 10:00:32 · answer #8 · answered by ? 4 · 0⤊ 0⤋
that is a good question I hope you will get some valuable answers
2016-08-26 12:03:01 · answer #9 · answered by ? 4 · 0⤊ 0⤋