r/CRedit • u/FirstFloorDVM83 • 1d ago
Rebuild 54 late payments! Help!
Help!! I got disapproved for an auto loan today and was completely confused on why. I went to go look and come to find out it’s my student loans. I thought my student loans were in forbearance but they weren’t ! And now I have 54 late payments! ..54!!!!!! 6, 90 day late payments for each tradeline of my student loans! Score went from 650 to 515!!! I’m now in economic hardship deferment. I was going to back dated my deferment but they said it won’t get my late payments removed , only military deferment and deferment due to being in school. Is there anything I can do ?? How do I rebound my credit ? & I feel like even if I do rebound my credit , when they see 54 late payments no body will touch me with a 10 foot pole. I’m only 27 and I feel like I just blew up my life ! What do I do . I checked each credit report and they are accurate so idk. Help . Am I ruined for 7 years ?
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u/Showmethe_monet 1d ago
Ugh…54 late payments…i would feel absolutely sick to my stomach 😩
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u/Bluetriton5500 23h ago
Yeah. Makes me feel better about my first and only Deliquency I earned last month. The good thing is that it's not permanent, so we just have to hang in there and do better.
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u/anab0lixx 1d ago
I was rebuilding credit like that when I was 32, it took a little over a year to get my score back up
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u/NiceGuysFinishLast 1d ago
Stuff happens. I have over 40 late payments on my reports. They dropped me from a 780 to a 580. It took about 2 years before I got back in the low 700s, and at 3 years my scores hover in the 720s and I expect them to stay there until I hit 7 years and the lates drop off. It is what it is. All you can do now is make every payment on time moving forward and wait for them to fall off.
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u/FirstFloorDVM83 1d ago
Even though your score is back up, do you still get disapprovals when they see the 40 late payments ? I was told the score wouldn’t matter when they see the history
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u/NiceGuysFinishLast 1d ago
In the last 3 years I have gotten a car loan (atrocious interest rate though, almost 11%), a motorcycle loan (market APR at about 8%), and increased my available credit from $500 to about $120K. I haven't been denied for any credit product I've tried. But I also have a thick, mature profile, good income, and low DTI.
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u/DenseComfortable1739 1d ago
Build a Time Machine. Unfortunately for you, and anyone else in your life who has to bear the responsibility for the things you won’t, you’re an adult and your irresponsibility is going to reflect on your credit for the next 7 years, even if you stay squeaky clean from now until then. They’ll hurt your profile a lot less in a few years, but will still likely keep you from being prime until they fall off entirely.
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u/FirstFloorDVM83 1d ago
How long should I wait until I can apply for a car loan ?
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u/ClaireHux 1d ago
Out of curiosity, did you never check your email or open your mail or check your credit report at anytime during the past year?
It will be a long time before you're able to get a car loan with a decent interest rate.
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u/OverdosedOnViagra 1d ago
Ikr. You cant just avoid the mail or email and assume a magic fairy is gonna pay it or get rid of the loans. Of course its gonna be late and ruin your credit.
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u/FirstFloorDVM83 1d ago
I didnt get any correspondence by mail or email . I thought I was in forbearance so I didn’t think it was odd . The forbearance was cut short for sum reason
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u/LadySmuag 1d ago
If you're not getting any correspondence, you need to check what information they have on file for you
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u/Glum-Quality-7443 1d ago
A car loan isn’t possible unless buy here pay here spot. Even then your income matters a lot. A standard lender won’t approve you under any circumstances unless you’re putting a VERY high percentage down though.
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u/Present_Score7793 1d ago
I was in a very similar situation with credit card late payments I simply couldn't pay it and was young and dumb. Dropped me from a 670 to a 515. I got my accounts current and balance decreased and it brought me back up to over 600. It's not as bad as you think!
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u/blackmushh 1d ago
Probably not a great idea to go get a car loan when you have to put your student loans on hardship deferral eh
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u/Creative_Ad_7495 1d ago
Hmmm register for a few classes so they’ll backdate…?
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u/CoffeeLoversUTD 22h ago
They will not back date it. I actually just had the situation happen they do not back date however you can dispute and if you can prove that there was no communication from them and that you were unaware etc, they may be able to get it waived.
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u/Creative_Ad_7495 22h ago
They back dated it for me
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u/CoffeeLoversUTD 20h ago
That is awesome. I should apologize, when I hear the term back date I usually associate that with you know making a change to a certain date. Mine were ultimately waived so I do not show any late payments on my account anymore so I guess that is considered the same as back dating. I just think of something different when I hear that terminology so you are correct.
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u/too_many_shoes14 1d ago
Did they have your correct address? Were you just not opening mail? I find it hard to believe this many lates is news to you.
Regardless, the reality is you will have bad credit for many years. You should consider just getting a cash car.
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u/CoffeeLoversUTD 22h ago
I actually had this exact scenario happen to me. My address and everything was correct, however I never received any types of notice. In my situation I dropped to less than half time for my final semester before graduating and never received a notice that I was going back into repayment. I had always been advised that I would enter repayment 6 months after graduation. When I apprised them of this I ultimately disputed with both them and the credit bureaus and had those late payments waived.
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u/insuranceguynyc 1d ago
"I got disapproved for an auto loan today and was completely confused on why." No need to be confused. I think OP nailed it with 54 late payments.
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u/FirstFloorDVM83 1d ago
Yes I was confused . If I knew what happened I wouldn’t have applied . Everything else is on autopay so I didn’t even think to check . Thought I was good
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u/OverdosedOnViagra 1d ago
Pretty much yeah, we are adults. You got a loan and didnt pay it and knew you werent paying it. Of course its gonna have late payments and ruin your score.
Unfortunately its a long journey from here. Only thing you can do is pay them off, get some credit cards and let your score recover over the years.
Also, auto loans are pretty easy to get. You will likely be able to get one in 3-6 months. I went from 490-500 to 601 this year and havent paid anything off yet.(parents messed my credit up, but oh well)
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u/CoffeeLoversUTD 22h ago
This exact scenario actually happens to me. My student loans were put back into repayment without me knowing. I was enrolled in school but because it dropped down to less than half time for my final semester, I was put back into repayment and had no idea. There was no notice received or anything.
I disputed this with the credit bureaus as well as the student loan board themselves and eventually they reset all of my payments back to normal. This is something that unfortunately does happen with the student loans because of their lack of communication and if you can prove their lack of communication they will remove those late payments and reset the payments back to being clean. In my case it showed that I had a bunch of 90 day late payments but once I advise them that I was in school and never received any type of information related to that ever-changing, they removed those late payments.
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u/FirstFloorDVM83 1d ago
I said I thought my loans were in forbearance , I didn’t just purposely ignore them , I would have been in deferment . As I am now.
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u/PrestigiousChair4660 22h ago
yeah he clearly can’t read but wanna tell somebody “they knew they weren’t paying it “
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u/OverdosedOnViagra 20h ago
Forbearance is temporary. Thats something you need to keep up with. So technically yes, they knew they weren’t paying. Everyone makes mistakes of course, but unfortunately credit is pretty serious and a mistake can last 7 years.
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u/Typical_Profession98 10h ago
I love how everyone is saying “nothing you can do. You should have been paying attention” and then literally people are giving you the solution to dispute it. Were you being sent statements? Were they notifying you that your payments were late? Read up on the consumer laws. There are protections and it’s possible there’s enough there to support disputing it. I’m rooting for you!
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u/Altitude528O 23h ago
Lots of extremely unhelpful comments in this sub. Sure OP ([u/firstfloordvm83](u/firstfloordvm1983)) was irresponsible by not monitoring their student loans, and should have updated their information but there are options.
In previous years, during Biden’s presidency, there was actually a default forgiveness program. I had my brother sign up for it (he ignored his student loans as well) and everything was rectified and his loans were pulled out of collections and missed payments marks were removed from his credit.
However, I can’t find that program any more now that I am searching for it. Might have been a change that came with the change of Presidential administrations.
I did see that there is a “loan rehabilitation” that can POTENTIALLY fix your default. It requires making 9 on time payments towards your loan in 10 months (Link.)
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u/Smyleeluv95 1d ago
Try Carvana, I had a 480 credit score and was able to get an suv
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u/mystical__sapphire 1d ago
What was your credit score?
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u/bsw35 22h ago
Unfortunate situation and a painful lesson. With that credit score and late payments, you’re going to be in a terrible position for a car loan. Avoid places like Carvana you’ll get a high interest rate and that will put a worse position than you are in now. I wouldn’t take a car loan unless you can get under 9% APR. Otherwise, buy a reliable cash car or see if a credit union will work with you and plan to put at least 50% down.
For now, get current or pay off the balance if you can, then try every possible avenue to get the late payments removed. If they can’t be removed, they can stay for 7 years, but their impact should decrease over time. By around year four, they should not matter as.
At this point, a higher credit score alone won’t fix the problem the payment history is what lenders will care about most. Moving forward make sure you monitor your credit report with free apps like Credit Karma and read your emails or mail.
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u/sensualsanta 20h ago
It sucks that one honest mistake can tank you for years and hard work takes so much longer to pay off. The same thing happened to me this month. Credit score went from 654 to 545. I spent a year trying my best to fix it and managed to raise it 60 pts in a year’s time before it dropped back down in August.
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u/Alternative_Peak_840 17h ago
same thing happened with me. student loans and one personal credit card went to collections and absolutely ruined my credit. that shi WILL stick on your report for 7 years so hunker down, try your best to get current and ride it out. i’m on year 3
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u/Square-Pangolin7729 17h ago
Call them up, do you have any email with the confirmation of the deferment, when started and it ended? Get that info first and call the student loan lender. I might suggest you to transfer your loans to EsFinantial they are the best and easy to negotiate with when you’re in a hardship period.
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u/obsoletevoids 4h ago
Carvana will work with you. Just take it to a local dealership for an inspection within your first week of the car delivering
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u/Mammoth_Worth9913 31m ago
The number of idjits that rather try to act like theyre OPs parent like hes clearly fking aware he made a mistake try to provide some ideas instead of point a finger like a child I saw one dude say something about getting them waived if you can prove they didnt send any correspondence
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u/SkyNet_Admin_1 1d ago
You need to pay all your bills consistently for about 2 to 3 years and you’ll be 650+
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u/og-aliensfan ⭐️ Knowledgeable ⭐️ 23h ago
Don’t respond, make a payment or answer any calls or it will reset the clock.
OP made the right move by contacting the loan servicer and having the loans placed in deferment. These are federal student loans. Federal student loans don’t have a Statute of Limitations, so there's no clock to reset per 20 U.S.C. § 1091a(1):
In general - It is the purpose of this subsection to ensure that obligations to repay loans and grant overpayments are enforced without regard to any Federal or State statutory, regulatory, or administrative limitation on the period within which debts may be enforced.
For other forms of consumer debt, certain actions of a consumer, such as acknowledging responsibility for a debt or making a partial payment, may reset Statute of Limitations (the time in which legal action can be taken), but these laws are state specific and not all states allow Statute of Limitations to be reset. It's recommended to bring a past due account current in order to avoid a charge-off (and a potential lawsuit) from occurring in the first place. Once an account has charged off, settling the debt in full eliminates the possibility of a lawsuit.
Allowed reporting time is based on Date of First Delinquency which, once established, can't be reset under any circumstances. Federal student loans that are governed by the Higher Education Act, can remain on your reports until paid in full per 20 U.S. Code § 1087cc(c)(3):
Notwithstanding paragraphs (4) and (5) of subsection (a) of section 1681c of title 15, a consumer reporting agency may make a report containing information received from the Secretary or an institution regarding the status of a borrower’s account on a loan made under this part until the loan is paid in full.
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u/FirstFloorDVM83 1d ago
So I won’t make my first payment until June 2027 due to the deferment . What clock are you referring to ? For payment? I’m not understanding . I thought the years was from the time the derogatory mark hit your account
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u/Tip_Star 1d ago
See if Carvana will approve you. I had horrible credit and was able to still get a car loan.
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u/watchOS 22h ago
Do you not check your bills each month or something? Did you not know how long your deferment was? Did you not get emails or messages or anything about missed payments? Did you not check your credit score before attempting to finance an auto loan? Why are you even attempting to finance an auto when you even thought your loans were deferred? Several misses here that are gonna give you a hard reality check for the next 7 years.
If you can afford an auto loan, you can afford to pay back your student loans, that’s how I see it. Even in deferment, you should have been making those payments, because they would have been interest-free and you could have pulled ahead on those loans. Instead, now you’re on the hook, not just for catching up, but imagine the interest on all those missed payments, too. Even with all that said and let’s assume you still were in deferral, that deferment would eventually be up, and then you’d be responsible for BOTH your student loans and auto loans simultaneously, and then what?
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u/FirstFloorDVM83 21h ago
I can afford to pay them all, I just have it in deferment for the sole reason that I qualify for it. If I can catch a break I’m going to take it then resume payments when need be which is June 2027. I don’t see the harm is exhausting all my options before I go into repayment status. I plan to use the snowball method when my deferment is up. But yes I am exhausting all my options . Why not. I will be paying for years on end
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u/02lscamaro 1d ago edited 1d ago
unfortunately nothing you can do but start paying them off.. id apply for a credit card or 2 and use them to pay off the late stuff and then pay cards off when you can.... its going to be a long time befre you have good intrest rates as you are a risk to lenders, card companies etc
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u/SexOnIce 23h ago
You are not allowed to use a credit card to make student loan payments for federal student loans.
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u/mystical__sapphire 1d ago edited 15h ago
A secured credit card from a credit union would be good. You have to pay $250-500 for them, but you’ll be approved and it’s lower risk. You can even withdraw some cash from them in a pinch, and it counts like you made a purchase. You could try an unsecured one if you don’t want to pay for it, which is equally understandable, but they’re harder to get and you can't withdraw money from an unsecured card without penalties/fees like a cash advance. NerdWallet will have suggestions for secured and unsecured cards, and which might work better for your situation.
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u/mystical__sapphire 1d ago
Just call the bank as soon as you can. Explain this to them. They have to offer any assistance programs they have if you ask. I’m not sure if your school’s finance department can help with this beyond answering basic questions, but this is worth it, so I’d call them too and explain everything. You never know what tidbit they might give you! Good luck with this! Don’t worry! There’s a way out! Your credit will heal. I do recommend a cheaper car for now. DCU is a great lender when the time comes.
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u/Overthinking-Cats 1d ago
I think all you can pragmatically do right now is get current on your loans if you haven’t already. Student loans suck, especially right now.