I am in the rehab for my student loan (finally) after reading alot from CB (Thank you) and the collection person is nice and informative.
After the rehab ended (should be next year in March), If i am not mistaken, the collection fee will be dropped, negative trade lines will be dropped from the credit reports and the loan goes out of default.
1. How many points can my credit score went up in general?
2. Since I am a credit challenge (Bk7 2001), Would this "new loan" posted in my credit report and has a trade line?
3. Is it better to pay in full when the loan is out of rehab or pay monthly?
Thks!
Full Version: After Rehab?
QUOTE(BKinSM @ Apr 27 2005, 05:58 PM)
I am in the rehab for my student loan (finally) after reading alot from CB (Thank you) and the collection person is nice and informative.
After the rehab ended (should be next year in March), If i am not mistaken, the collection fee will be dropped, negative trade lines will be dropped from the credit reports and the loan goes out of default.
1. How many points can my credit score went up in general? No way to guess on that one - depends on what else is on your report. If these are your only baddies, then your score should go up. If you have other baddies, then your score still might go up, but not as much. YMMV.
2. Since I am a credit challenge (Bk7 2001), Would this "new loan" posted in my credit report and has a trade line? Yup.
3. Is it better to pay in full when the loan is out of rehab or pay monthly? General consensus is that it's good to show some history on an installment loan for 6 mths - 1 yr. However, they don't carry the same weight as revolving. Depends on your credit and financial goals. If you have the funds to pay them off and it's saving you on interest and you have other good credit, then pay them off. If you are slim on trade lines, then let them sit for a bit to establish a pmt history.
Thks!
After the rehab ended (should be next year in March), If i am not mistaken, the collection fee will be dropped, negative trade lines will be dropped from the credit reports and the loan goes out of default.
1. How many points can my credit score went up in general? No way to guess on that one - depends on what else is on your report. If these are your only baddies, then your score should go up. If you have other baddies, then your score still might go up, but not as much. YMMV.
2. Since I am a credit challenge (Bk7 2001), Would this "new loan" posted in my credit report and has a trade line? Yup.
3. Is it better to pay in full when the loan is out of rehab or pay monthly? General consensus is that it's good to show some history on an installment loan for 6 mths - 1 yr. However, they don't carry the same weight as revolving. Depends on your credit and financial goals. If you have the funds to pay them off and it's saving you on interest and you have other good credit, then pay them off. If you are slim on trade lines, then let them sit for a bit to establish a pmt history.
Thks!
General consensus is that it's good to show some history on an installment loan for 6 mths - 1 yr. However, they don't carry the same weight as revolving. Depends on your credit and financial goals. If you have the funds to pay them off and it's saving you on interest and you have other good credit, then pay them off. If you are slim on trade lines, then let them sit for a bit to establish a pmt history.
Hi thks for replying.
I am just wondering when you says interest...is this interest competitive or it will be like 10% and above?
Thks!
Hi thks for replying.
I am just wondering when you says interest...is this interest competitive or it will be like 10% and above?
Thks!
This is a "lo-fi" version of our main content. To view the full version with more information, formatting and images, please click here.