Got on a rehab program for my defaulted student loans. the rep told me that my reports will be changed to show paying as agreed rather then then charge off for the next 12 months. Then the balance will be rolled into a new loan and all the old tradelines will get deleted. In the mean time, can I expect to see any bump in my scores now that the charge off will be off but it is still listed as a collection acct?
Congrats on your decision to rehab your loans - you will be happy you went that route. You need to know that your score will take a pretty good DUMP as soon as it shows you are now making payments on them. BUT with that said, it will start to gradually go back up, and it will show as "current", which is very important if any creditor see's your report (if you apply for a car loan or home loan) Now the good news, as you stated earlier, the negative tradelines will disappear all together after the 12 month period, so your score will jump considerably at that point. -Sal
Actually, your scores will stay the same. I am in the rehab program, and the CA, who works on behalf of the government, does not report to CRAs. You will keep showing as derog, but the CA will not post anything.
