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I defaulted on my student loans. I’m repaying them now though. I was told by the student loan company that my credit score would go up, but have read many articles stating otherwise. It sounds to me that the credit score is permanantly ruined after defaulting on a government loan. What’s the truth? Know any websites that I could read about this?

If you do think my score could go up, can you give an estimate time frame? I have nothing else open on my credit report (only old closed accounts all in good standing). I can’t get anything new to help because of the bad score. The defaulted student loan is the only bad thing I’ve ever had on my credit report.

2 Thoughts on Will credit score ever go up after defaulted student loans? Serious answers only please?
  1. lu_dicrous
    June 25, 2011 at 2:23 pm

    Usually the have rehabilitation programs which will increase your credit score if a creditor picks up the loan. I did the same while going through a divorce, it sucks, but mine jumped about 60 points after the program.

    Hang in there and pay it on time.

  2. fasb123r
    June 25, 2011 at 3:02 pm

    This is what you need to do in order to raise your credit score at this point. First of all- yes you can raise it back up as well as you can bring it even further down- it all depends on your payments. Its good that now you pay on time and just make sure you stay on time with your payments and you make at least the minimum payment. But without any other creditors reporting it will take much longer to rebuild the credit score. Try to get a credit card or two, even with higher interest rate, and start using it and making monthly payments on it. This way you will have other creditors reporting at the same time and that will bring your score up faster. If you are unable to get the credit card now because of the low score- get a secured credit card- you go to any bank and you tell them you want to get a secured credit card from them. The way it works is you leave some amount cash with them (usually minimum is around $ 200-300 dollars) and that is your credit limit. After six months, as long as you make good payments they will make it unsecured and then other credit card companies will start giving you credit back as well.
    Good Luck.

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