I went to a car dealership to apply for a car loan. I knew my credit was never "great", and it wasn't even "good" but I decided to see what they might be able to work out for me. I didn't realize that I would spend 30 minutes picking my chin off the floor. They told me my credit score was 390. WHAT?! 390!? Is that even humanly possible?
I pulled my credit reports last night, and saw that I have 29 defaulted accounts. Upon further reading, i have found that they are student loans. From what I can gather, there are about 6 or 7 seperate loans that were managed from one large company, then sold to sally mae, then to another company, then to the department of education. Moral of the story? each time the loan was bought or transferred (my apologies if I'm not using the correct terms) the new company would list the debt. So instead of having defaulted student loans, it shows I have about 24.
I have NO idea where to even start trying to fix this. THe loans are currently being paid again, through the department of education. Do i contact each individual company? I'm beyond confused :(
Any direction would be appreciated. Thank you in advance.
From what I've heard, it seems that they'll all show up on the CR. But you can rest assured that the CA who's the current owner of your debt will depict an amount, while the others will reflect a '0' balance. Creditors are well aware of the fact that the same debt is being reflected time and again.
unfortunately no, they all have an amount on them, even the original creditors. They are all slightly different (within $20-$40) but I assume that is from interest.
Hi. Sorry to hear about your situation. First, I would like to say defaulting on student loans highly impacts your credit score. These installment accounts are much safer than revolving credit, however, my suggestion to you is to start fixing things now. If you can try to consolidate most of your loans so that way you don't have as many floating around and being sold or purchased to other companies. I have many of my student loans attached to Sallie Mae and one through Direct Loans (Dept of Ed). I suggest you get everything consolidated first. Once that is done, your lender will then send you a monthly payment for only one payment which once received they will evenly distribute amongst all your accounts. I have 5 loans with Sallie Mae and this is what they have arranged for me. I pay 300 a month but they ask for around 200. They allocate to all my minimum payments and the extra to the principles of each. If you can get yourself organized and budget, this may in turn help you to make the necessary payments you need and to start building your credit score back up. Removing defaulted accounts, especially student loans (installments) is really hard and it must either be something can not be verified. Your current lenders are the ones you need to work with, especially Sallie Mae and Dept of Ed. They will work with you to set up payment arrangements. Are you still late or how did you become defaulted? Fix those first. Consolidate for one to two bills to pay. Not to so many that you can't keep tact. Another thing you can try is to also see if you can become an authorized user to another persons account of even have them cosign a car loan for you. This way if you make payments on time, and build a rapport with the lenders of your student loans in time you will build credit again. Honestly, 390 is extremely low. Having the car loan or another account open even with a cosigner will help to rebuild some credit and over time with ontime payments and good payment history you can rebuild your credit. Not all credit card companies report the authorized user of another account to the credit bureau as well, so that may be tricky, but some still do. I have one where I am the account holder and my mom is an authorized user of my account and this agency reports the account to both my credit report and my mom's as well. The main point is the fix your situation and start rebuilding your credit. Your situation is not something easily amendable. I have to be honest. It will take time and patience. You could go to debt / credit counseling. They may have better suggestions to your specific situation, but make sure its one that is nonprofit. Research online for your local state agencies as they are sure to offer such help. I hope this helps. Good luck to you. Keep in touch.