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How many Student Loans are on
your credit report?
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Student loans can have a devastating effect on
credit scores. Many credit reports show seven plus student
loans, listed individually, for both the student and the
parents that signed for the loans. Most consumers don't realize
that each semester when they apply for more loan
dollars their credit report reflects the new funds as a
completely separate account. By the end of a student's school
career they could wind up with 10-20 separate loans on their credit
profile. What makes this credit issue even worse for the
score are late payments. If one late payment occurs it shows up
on each separate loan as if the consumer was late 10-20 times on
10-20 accounts. This causes a dramatic decrease in the score
plus we have found that student loan late payments are difficult to
remove.
Students or any consumer responsible for paying the loan back
should always confirm with a student loan representative, prior to
application, how the credit score is affected. All
conversations should be documented so they can be used at a later
date, if damage occurs, from frivolous late payments reported after a
deferment begins. With the proper information it can be easier
to motivate the student loan credit department to remove these
mistaken late payments.
When co-signing for student loans we have found both parents
and students shocked at finding late payments, and sometimes
defaulted loans, on their credit profile. If a consumer is
going to have damage to their credit report and score when payments
are made late they must be in control of making those payments.
No one can control another person and insure that all payments will
be made accordingly if they are not actually paying the bills.
Any person can have the best of intentions and still the damage is
done. If a mistake occurs or a parent loses a job and cannot make the
payment on time any or all of the loan applicants will
suffer. In all situations having control of making the payments
is the only way to insure they will be paid promptly and credit
profiles will be spared dramatic score drops.
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North Shore Advisory is now active in Social Media!
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Call
Now for a
Free
Credit Education Seminar!
914-524-8300
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"Great credit brings
great
opportunity!!" Copyright
2010
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Call
Today for a Free Credit Education Seminar!
914-524-8300
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Do
you know how many points a late student loan will drop the credit
score?
Will refinancing student loans hurt credit scores?
Do you have ALL the answers??
Call for your FREE Educational Seminar!
This training includes indepth education on each of the credit
reporting agencies and the scoring systems associated with them. We
will also educate your management staff on credit, the unknown dangers
of credit score reduction and the ways to help your clients have peace
of mind and get the credit they need.
Contact NSA Today!
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NEW!
Do
You Have Any Questions About Credit?
Ask Tracy!
ask@northshoreadvisory.com
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Featured Testimonial
Here are the scores for your
client. His mid score is at least a 751! Great to see you!! This is
fantastic! Thank you so much Tracy!
Kind Regards,
Allie M. Baldassari
Senior Loan Officer, Bank of
America Home Loans
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