Missing student loan payments puts your account under delinquent or default status. This leads to higher interest on loans, loss of eligibility on some student aid programs, and worse, repossession of property.
Can late payments on student loans be removed? What happens when you don’t get them removed? Will removing student loans from your credit report affect your credit score?
A default student loan occurs 120 days after delinquency on a private loan and 270 to 360 days for federal loans. Your score is likely to drop by 100 points! Once your lender accurately reports the late payments, the information will not be removed.
However, if the information reported is incorrect, you can dispute the information and have it removed. To remove a student loan from your credit report due to fraud or inaccuracies, file a dispute with the three major credit reporting agencies – Equifax, Experian, and TransUnion. Ask them to remove the inaccurate loan details from your credit report.
An investigation will be launched, and the information will be removed from your credit report when it is clear the loan was taken without your authorization.
Student loan forbearance is an agreement you make with the lender to reduce or postpone student loan repayment for a designated period. Forbearance is only temporary relief to help you deal with a sudden hardship and helps prevent your loan from defaulting. Unfortunately, forbearance increases the amount you owe.
If you are unemployed and the student loan is weighing you down, you can apply for deferment, which can be interest-free.
Still, both forbearance and deferment are short-term solutions to help you catch up with the payments when your loans haven’t defaulted. Still, you need to pay your student loan as soon as your financial situation improves.
On August 24, 2022, President Joe Bidden announced that his administration would waive student loan debt for qualifying Americans. But, are all student loans eligible for late repayment forgiveness?
To qualify for the federal government forgiveness program, you must have taken direct federal loans or took a Stafford loan. Non-federal loans, handled by private loan companies, don’t qualify for the federal loan forgiveness program.
Another way to get student loan forgiveness is the income-driven program that stretches out to a term of 20 or 25 years from the standard repayment period of 10 years. After making on-time qualifying payments for the period, whatever balance you still have is usually forgiven. Income-driven payments are usually capped between 10% to 20% of your income.
No. As Aaron Huebner explains in this Youtube video Q&A session, a student loan is possibly one of the worst debts because it has a negative connotation and doesn’t go away! So, consolidating your defaulted loan will not remove late payments.
Debt consolidation opens a new entry in your credit report but won’t erase the late student payment history. The report will keep showing until the end of seven years when it naturally drops off your credit report.
Regarding credit scoring, payment history, length of credit history, amounts owed, new credit cards, and credit mix affect your credit score. When you consolidate your student loan, you get to lose these crucial additions. However, properly taking charge of your student loan repayment plan gives you a good credit score that helps you apply for future loans and credit cards.
These are some of the federal student forgiveness programs you can apply for if you qualify:
Managing student loans may need some counseling, especially if you have been falling behind on your payments. Ascent Network has a qualified team to help you take charge of your finances. Whether you are applying for forbearance, deferment, or disputing an incorrect student loan entry, you can trust Ascent Network to help you improve your score.
A more positive outlook toward a more financially secure future starts today. Give the Ascent Network a call today at 1-877-871-2400. Ascent Network helps consumers all over the United States and is available locally in Huntington Beach, CA, Coachella Valley, Palm Springs, Cathedral City, Rancho Mirage, Palm Desert, Desert Hot Springs, Indian Wells, La Quinta, Indio, and Thousand Palms.
Is it possible to negotiate the rate you pay in interest on your credit cards? If you carry a balance on your credit cards, the answer to this question could save you a lot of money in interest.
Generally, credit cards charge cardholders an annual percentage rate (APR). This APR is how the credit card company charges you for the privilege of using their card. The percentage amount can vary. Some credit card companies charge more than others, and often the APR you are charged is based on your credit score.
It is important to know how much the APR is on your cards. Even lowering your rate a few percentage points could save you thousands of dollars.
Interest rates vary by card. But, more than that, they are based on the risk the credit card company is taking by issuing you credit. Just like any other lender, they need to weigh how much of a risk it is that you will not make your payments on time and in full. Where loans for large items have your house or your car as collateral in case you default, credit companies do not have any real-property items to use as collateral.
This is why many credit card companies’ interest rates are often higher than those of banks and other lenders. If you have a low credit score, you are a higher risk to the company; therefore, your interest rate is likely higher than those with excellent credit scores.
After climbing for 20 straight weeks this summer and spring, the current national average credit card APR is a little more than 18%. The average changes often, so it is a good idea to do your research when looking for a competitive APR.
Generally, the answer to that question is, no, you cannot. However, there are always exceptions. Primarily, when you have a higher credit score, you are a better risk for the lender. And the less risk you are, the lender realizes they can make more money off of you without fear.
Therefore, you can go to them and let them know you are unhappy with their high interest rate. Let them know you may move on to another lender. They might reply with a counteroffer or another program that they can offer that has a lower APR because they would like to keep your business.
This has the potential to work only if your credit score is above 680. If it is below that, you will most likely be stuck with your current interest rate until you can improve your credit score.
If your goal is to lower your interest rate, you first need to increase your credit score. Your score is derived from information contained in your credit report. The higher the number, the better your score.
Here are a few ways to improve your score over time:
It is unlikely you will be able to decrease your interest rate, but it is not impossible. Do everything you can to increase your credit score, and once you do, contact your credit card company. Let them know you want a better APR. If you are not a credit risk, there is a possibility they will honor your request.
The worst that can happen is that they say no. Nothing lost; nothing gained. But, if they say yes, it could save you thousands in interest. It never hurt to ask.
A more positive outlook toward a more financially secure future starts today. Give the Ascent Network a call today at 1-877-871-2400. Ascent Network helps consumers all over the United States. It is available locally in Huntington Beach, CA, Coachella Valley, Palm Springs, Cathedral City, Rancho Mirage, Palm Desert, Indian Wells, La Quinta, Indio, and Thousand Palms.
Charge-offs, late payments, bankruptcy, and defaulting on loans cause you to have bad credit. It is no secret that the longer you continue having bad credit, the more money it costs you.
Each time you take out a loan or swipe your credit card, there is a system in place that tracks and keeps a score. Your credit score, whether bad or good, comes into play whenever you want a loan, and it affects your insurance premiums.
Here’s a look into how much bad credit costs you.
A bad credit score is detrimental because it prevents you from qualifying for the best mortgage rates. This means you pay more over the term of your mortgage. What may seem like a slight difference in interest rate adds up to thousands of dollars over the repayment period.
A credit score below 580 only allows you to secure credit cards that require a minimum deposit of $100 to $200 to open a credit account. In addition, applying for the card is likely to cause your credit score to go down more because applying for a new card creates a hard inquiry on your credit report.
Your bad credit score negatively affects your auto insurance premiums because you are viewed as a high-risk borrower and more likely to file claims. A person with a credit score of 800 or higher pays approximately $1,297 a year, but someone with a credit score of 579 or lower pays $2,717 a year. Clearly, having a bad credit score could potentially cost you $1,420 a year when paying your auto insurance.
Career advancement is everyone’s dream as it comes with better pay. But before employers entrust you with more responsibilities, they may pull your credit reports to ensure you are someone who is responsible, especially if the new position comes with financial responsibilities.
Credit repair is a process that takes time and effort, but results are usually noticeable within three to six months. The length of time varies from one individual to another, depending on how much damage has already been done to their credit reports and what has already been done to correct it.
Here’s how you can repair your credit:
There is a lot of confusion surrounding the terms “credit restoration” and “credit repair.” Both involve correcting errors on your credit report and taking steps to improve your credit score. But there are some key differences between credit restoration and credit repair.
Credit restoration entails removing negative items from your credit report. You do this by negotiating with your creditor or disputing the information through the Fair Credit Reporting Act (FCRA) by proving identity theft or demonstrating that the item is inaccurate.
On the other hand, credit repair is the process of taking action to improve your credit score by paying off debts and maintaining a good payment history.
A credit score is a snapshot of your creditworthiness, and credit lenders use the credit score to make very important financial decisions about you. But is there a difference between a 600 and 620 credit score?
Here’s how VantageScore views your credit score:
This is how FICO views your credit score:
No. Credit repair actually helps you improve your credit score by removing negative information from your report and replacing it with positive information. Your FICO score, for example, will improve by a few points as a result of a clean slate on your report.
Bad credit costs you your financial freedom from getting auto loans, mortgages, and getting promotions. If you have a poor credit score, you can still improve it in a few months.
A more positive outlook toward a more financially secure future starts today. Give the Ascent Network a call today at 1-877-871-2400. Ascent Network helps consumers all over the United States and is available locally in California in Huntington Beach, Coachella Valley, Palm Springs, Cathedral City, Rancho Mirage, Palm Desert, Desert Hot Springs, Indian Wells, La Quinta, Indio, and Thousand Palms.
If you have a bad credit score, the best thing to do is to look into credit repair. However, you may be unsure whether a credit bureau or lender can help you. Here’s a look at when each organization can help you with your credit repair efforts.
There are a few different avenues to explore when it comes to repairing your credit. You can either go through a credit repair agency, work with your lenders or repair credit yourself.
Credit repair companies work with your creditors and credit bureaus to ensure the information is up-to-date and accurate. They also guide you through the process of disputing inaccurate entries and checking if there are fraudulent accounts. In addition, they also offer credit monitoring and advise you accordingly.
You may also be able to work directly with your lenders to try and remove negative items from your report. However, it can be time-consuming, and you may feel you are not getting results.
Another effective way to repair your credit is taking measures into your own hands. This includes paying off debt, disputing credit report errors, and maintaining good financial habits. Even though it takes some time and effort, it’s usually the most successful approach to improving and having a good credit score.
Credit repair can be tricky and time-consuming, so you might wonder if it’s worth paying someone to help you. Well, you can save money if you have the time and patience to do it yourself. But if you’re not comfortable dealing with the complexities of credit repair, it might be worth paying someone else to do it for you.
There’s no guarantee that paying someone will actually improve your credit score. If you are to pay for credit repair services, use credible credit repair companies because fraudulent companies make things worse for you. How can you tell apart credible from fraudulent agencies? Fraudulent agencies:
A legitimate credit repair company will only offer to help remove inaccurate information from your credit report that may harm your credit score. Remember, credible credit repair companies can’t do what you can’t do on your own.
Yes! A lender can fix your credit if you take proactive steps. First, you need to check your credit report for any inaccuracies and dispute any errors you find therein. If you can prove to the lenders that the entry is inaccurate, your lender is obliged to correct the mistake on your credit report.
Using a lender is often more effective than going through a credit repair agency, but it can still be time-consuming and might be difficult to get results.
Repairing your credit is crucial if you want to enjoy low-interest rates when taking loans. To repair your credit to raise your score fast, here are some steps you can take:
Credit repair can take as little as three months or longer if you have faced foreclosure, bankruptcy, or a history of late payments. At Ascent Network, our credit repair experts provide credit profile audits to see how they can help improve your credit score. They also help you improve your credit by verifying and restoring the correct entries on your credit report.
Besides credit repair and credit score improvement, Ascent Network offers debt settlement, foreclosure prevention services, debt consolidation, and education loan negotiations. Ascent Network also provides financial counseling so you can take charge of your financial freedom. Why not be among Ascent Network’s clients and have a FICO score increase of 105 or more?
Credit companies and lenders can help you improve your credit scores. If you use a credible credit repair agency like Ascent Network, they will contact the credit bureaus and dispute incorrect information found in your credit report. If you choose to use the lenders, you must be proactive and follow up using the information provided to repair your credit.
A more positive outlook toward a more financially secure future starts today. Give the Ascent Network a call today at 1-877-871-2400. Ascent Network helps consumers all over the United States. It is available locally in Huntington Beach, CA, Coachella Valley, Palm Springs, Cathedral City, Rancho Mirage, Palm Desert, Desert Hot Springs, Indian Wells, La Quinta, Indio, and Thousand Palms.
If you’re struggling with debt, you may be receiving calls from a debt collector. These calls can be very overwhelming and emotionally draining. You may have wondered, “Can I tell them to stop calling? How do I stop bill collectors from calling my cell phone?”
Fortunately, resources and laws are in place to help you. The Fair Debt Collection Practices Act (FDCPA) protects you from abusive debt collectors, and the law prohibits debt collectors from making harassing or threatening phone calls or using profane language. Read below to learn how to stop debt collector calls.
The law is very clear on what creditors can and cannot do, and knowing your rights helps you deal with debt collectors. Federal law restricts debt collectors from:
Debt collectors should not contact you for a debt you do not owe. If they contact you regarding a debt, ask them to verify the debt first. They are not allowed to contact you if they cannot verify it.
If they can verify the debt, you may wonder, “Can I tell a debt collector to stop calling?” Yes! You can stop bill collectors from calling your cell phone and harassing you by sending a cease and desist letter telling them to stop contacting you.
Ensure you send the cease and desist letter by certified mail and pay for a return receipt so you are sure the mail arrived, and keep a receipt confirming the collector received it. Once they receive the letter, they will contact you once more via mail to let you know that they have stopped further efforts to contact you regarding the debt and will be considering other actions.
Another way to prevent creditors from calling you is by telling them you prefer to communicate with them through writing. The debt collectors will be mandated to write you letters instead, and you will be able to keep a record of everything said.
If you have a bad credit score, you may receive more collection calls than before. Most of these calls are legitimate debt collectors trying to collect on the accounts they represent. But fraudsters may also be calling, pretending to be debt collectors. To keep you safe, this is what you should not do when a debt collector calls.
You should not give a debt collection company your financial information. This includes your
Debt collectors may use this information to collect from you through a bank levy, wage garnishment, or property lien if the judgement is in their favor. You should only provide basic information concerning your debt.
You should not make a small payment to show “good faith” when a debt collector asks you to. This is because this only extends the statute of limitations. Remember that the clock resets to the date you last made your payment.
You should not admit the validity of your debt, as this also revives the statute of limitations. When you make a promise such as “I know I have a debt and will start paying next month,” debt collectors take it as a separate contract that renews the statute of limitations.
You should not ignore a debt collector’s call as they may be calling to let you know they have filed a lawsuit. Ignoring such a call may warrant a default judgement against you, and you may be slapped with other legal fees.
You should also control your temper when talking to a debt collector so that they may not use it in court, as it will show that you are abusive, thus hurting your chances of winning the lawsuit.
A credible credit repair company like Ascent Network has the expertise needed to identify errors such as debts that have not fallen off your credit report after the seven-year lapse. They can also identify errors in your credit report that you may miss and file a dispute with credit bureaus so they can fix the mistakes. This ultimately stops calls from debt collectors.
Debt collectors call when you have a delinquent debt meaning that your credit score also has been impacted negatively. The Ascent Network helps repair credit and communicate with your creditors on your behalf. They let you know which options you should take to improve your credit, which debts have fallen off the statute of limitations, or whether to pay for delete.
A more positive outlook toward a more financially secure future starts today. Give the Ascent Network a call today at 1-877-871-2400. Ascent Network helps consumers all over the United States and is available locally in Huntington Beach, CA, Coachella Valley, Palm Springs, Cathedral City, Rancho Mirage, Palm Desert, Desert Hot Springs, Indian Wells, La Quinta, Indio, and Thousand Palms.
Missing student loan payments puts your account under delinquent or default status. This leads to higher interest on loans, loss of eligibility on some student aid programs, and worse, repossession of property. Can late payments on student loans be removed? What happens when you don’t get them removed? Will removing student loans from your credit … Continued
Read MoreIs it possible to negotiate the rate you pay in interest on your credit cards? If you carry a balance on your credit cards, the answer to this question could save you a lot of money in interest. What Is an APR? Generally, credit cards charge cardholders an annual percentage rate (APR). This APR is … Continued
Read MoreCharge-offs, late payments, bankruptcy, and defaulting on loans cause you to have bad credit. It is no secret that the longer you continue having bad credit, the more money it costs you. Each time you take out a loan or swipe your credit card, there is a system in place that tracks and keeps a … Continued
Read MoreIf you have a bad credit score, the best thing to do is to look into credit repair. However, you may be unsure whether a credit bureau or lender can help you. Here’s a look at when each organization can help you with your credit repair efforts. Who can help you repair your credit? There … Continued
Read MoreIf you’re struggling with debt, you may be receiving calls from a debt collector. These calls can be very overwhelming and emotionally draining. You may have wondered, “Can I tell them to stop calling? How do I stop bill collectors from calling my cell phone?” Fortunately, resources and laws are in place to help you. … Continued
Read MoreWE COMMUNICATE WITH ALL THREE CREDIT BUREAUS FOR YOU:
