A defaulted student loan will put you in a complicated situation. You will likely have to repay the loan and your credit will be ruined.
When your student loan goes into default, your account is turned over to collection agencies and various collection procedures begin. In addition, the government can garnish your social security benefits, your wages, and more.
According to a law that Congress created called the Fair Credit Reporting Act, you only have a negative mark on your credit report for a maximum of seven years. Although, these debts can be collected upon for life!
A defaulted student loan on your report may cause you to have to pay interest rates of roughly 25% and place large down payments just to be approved. In addition, you will be turned away for a new line of credit more often than not.
There is a possibility that this mark can be removed from your report and a chance that you may be able to remove the debt entirely. To do this, you should dispute the collection marks on your report.
You should send a dispute letter to each bureau; in your letter provide an explanation as to why the mark is not accurate. For example; it has been reported for seven years already, not my account, account is paid in full and so on.
This is the most difficult item on a credit report to negotiate. As a benefit to you, we suggest that you hire a credit repair service to dispute it on your behalf. This will give you a licensed attorney fighting for you which will be knowledgeable of the new laws constantly passed by congress to help protect consumers.
You credit score impacts every aspect of your life and thus we feel it is worth the money to hire an expert. This can be done at very reasonable rates and compared to the high cost of low credit score it is a good idea.
You should be aware that a loan from the government such as the Perkins loan or a Stafford loan will be much harder to remove from your report. However a private loan such as one with Sallie Mae will still be difficult to remove but easier than a federal loan.
The creator of the negative mark will be contacted by the bureaus and asked to verify the debt, including that the account is yours, the balance of the account, and that the dates are correct. This will take place as soon as the bureaus receive your dispute letter.
The Fair Credit Reporting Act states that any unverifiable mark on your credit report must be removed. Therefore, if the account can not be verified, the negative mark must be removed from your credit report.
Errors are made all the time by the bureaus and lenders, but it is your credit that will suffer. Estimates show that 1 in every 4 people have an error on their report that is costing them money in higher interest rates. Therefore, if this mark is in error, it is very important to include all documentation that you have with your dispute letter to verify it is in error.
In sum we suggest you dispute this mark with the credit bureaus. Defaulted student loans are removed every day from credit reports and if you have it, it does not mean you will have a low credit score for the rest of your life.
When your student loan goes into default, your account is turned over to collection agencies and various collection procedures begin. In addition, the government can garnish your social security benefits, your wages, and more.
According to a law that Congress created called the Fair Credit Reporting Act, you only have a negative mark on your credit report for a maximum of seven years. Although, these debts can be collected upon for life!
A defaulted student loan on your report may cause you to have to pay interest rates of roughly 25% and place large down payments just to be approved. In addition, you will be turned away for a new line of credit more often than not.
There is a possibility that this mark can be removed from your report and a chance that you may be able to remove the debt entirely. To do this, you should dispute the collection marks on your report.
You should send a dispute letter to each bureau; in your letter provide an explanation as to why the mark is not accurate. For example; it has been reported for seven years already, not my account, account is paid in full and so on.
This is the most difficult item on a credit report to negotiate. As a benefit to you, we suggest that you hire a credit repair service to dispute it on your behalf. This will give you a licensed attorney fighting for you which will be knowledgeable of the new laws constantly passed by congress to help protect consumers.
You credit score impacts every aspect of your life and thus we feel it is worth the money to hire an expert. This can be done at very reasonable rates and compared to the high cost of low credit score it is a good idea.
You should be aware that a loan from the government such as the Perkins loan or a Stafford loan will be much harder to remove from your report. However a private loan such as one with Sallie Mae will still be difficult to remove but easier than a federal loan.
The creator of the negative mark will be contacted by the bureaus and asked to verify the debt, including that the account is yours, the balance of the account, and that the dates are correct. This will take place as soon as the bureaus receive your dispute letter.
The Fair Credit Reporting Act states that any unverifiable mark on your credit report must be removed. Therefore, if the account can not be verified, the negative mark must be removed from your credit report.
Errors are made all the time by the bureaus and lenders, but it is your credit that will suffer. Estimates show that 1 in every 4 people have an error on their report that is costing them money in higher interest rates. Therefore, if this mark is in error, it is very important to include all documentation that you have with your dispute letter to verify it is in error.
In sum we suggest you dispute this mark with the credit bureaus. Defaulted student loans are removed every day from credit reports and if you have it, it does not mean you will have a low credit score for the rest of your life.
About the Author:
For a free credit consultation call 1-866-246-7311. Additionally visit us for more about Defauted Student Loan or to learn how to remove a mark from NCO Financial a popular collection agency.
No comments:
Post a Comment