Student Loans and Credit Repair
College is a time to plan your future, study, socialize, and party – not necessarily in that order. There is, however, one thing you should definitely have your eye on. It may not be the most interesting, nor the most exciting, but it will have an impact on your financial future.
Student Loans and Credit Repair
The average American usually shrugs off a student loan as just another part of life. Maybe even a part of growing up. The general feeling is that everyone has to deal with it sometime or another. When you consider this statistic – the average graduate leaves college with $250,000 in debt – you will be forced to reconsider your attitude towards student loans.
Credit repair can act as a safety valve that releases the pressure of the debt and safeguards your FICO score.
How the Loan Affects Your Score
Two important factors that affect your FICO score are payment history and the used-debt to available-debt ratio. These make up two-thirds of your score. A student loan affects both. If you find yourself unable to pay back the loan on a regular basis, then your payment history reflects that negative item, which in turn can pull your score down.
What Credit Repair Can Do For You
A professional credit repair agency can help you better manage your loan repayment, thereby reducing its effect on your FICO score. Here are some of the techniques they use:
- Determining the Lender and the Amount
This may read like a curious case, but the agencies first determine who the current lender of the loan is, and how much you owe them. The reason is that a collection agency may have purchased your loan from the original lender.
- Negotiating a Deal
If you have fallen way back on your payments, then the credit repair agency talks to the lender and renegotiates a deal. One important criteria for renegotiation is that you are able to make at least 9 payments on time.
- Mediation Through an Ombudsman
There are times when you may feel that a certain loan payment is not required because of an error on the lender’s part. The agency can mediate on your behalf with the student loan ombudsman and get the error fixed.
Credit repair agencies cannot remove your student loan, but they will certainly enable you to repay it while protecting your FICO score.
Are you tackling student loan debt? If you’ve missed payments, your credit may be affected, and we can help. Are you curious about how the credit bureaus operate? Are you looking for the best advice in credit repair? At Action Credit Repair, our experts will provide a personalized credit consultation, an audit of your credit history, and offer solutions to all of your credit obstacles. Contact us today to speak with an experienced professional: Call 518-945-2299 or email [email protected].