How long does Rehabilitation take to improve Credit Score

After 12 consecutive timely payments your default loans will be considered as current and it will be reflected in your credit report. Several factors are there that control credit score. Punctuality is one of those. If you are regular with your payments, you can improve your score a lot.

Have patience and try your best to pay the installments on time. Once your loans are rehabilitated your score will increase automatically.

Since the maximum portion of credit score depends upon timely payments, rehabilitation raises your score considerably. See how credit score is sensitive to timely payments-
http://www.debtconsolidationcare.com/forums/calculate-score.html

i've just started applying for student accounts but i have recently defaulted on a payment i ignored until it charged me 600% interest and i was wondering how to clear the default and generally clear searches made by companies on my credit score..
thank you

Are you talking about a student loan or a credit card account?? No student loan has or ever will charge 600%.

oh no not student loan it was a catalogue order but because i neglected it they charged me 600% interest and have put a default against my name hence why i am unable to open a students account anywhere. would i be able to open a current account though?

the Higher Education Act doesn't offer the rehab program anymore. I've paid 7 month's straight now and my loan is no more in default status, however I want a way to get my credit repaired. any thoughts?

I just recently got a consolidation loan for my defaulted student loans. I am hoping that this will help me get them out of my hair finally and maybe improve my credit.

tQuote:

I can pay it in full, however I'm just standing by to see if they can find any lenders. since paying it off or consolidating is not gonna wipe my credit damages clean. are there any alternatives to rehab? so I can get rid of this loan and it's damages to my credit...

Who is your guarantor? I have been reading on other boards that there are some new rehab lenders available for some agencies and that rehabs are slowly happening again.

Hesc is my rehab guarantor, if that's the right one! I keep calling them every month to see if anything is happening! so do you think I should wait untill rehab kicks back!

I may have a student loan in default. GC services will no respond to any request for documentation. They claim I must enter a payment agreement but they REFUSE to send me any details. They claim to be "all electronic" and they do not operate on paper. They add 25% "penalties" every 4 months. They also seem to be dunning family members, and others who have a name similar to mine. I had an attorney -- he quit after a couple of months because GC services said they would not deal with any attorneys. Suggestions!!!!

No they do not add 25% in penaties every four months...in fact they add NOTHING at all. All calculations are done by your guarantor. You were charged up to 25% 60 days post default and your interest is accruing and is being capitalized.

What documentation do you want? All they have to provide you with is a copy of your prom note. With federal loans, unless you have a valid dispute, I suggest you take care of it quickly, before they initiate a garnishment against you. They do not need a court order for that.

My son took out a 19K student loan with Citibank and forged my signature as a co-signer. Long story. Unfortunately he defaulted on it and Citibank sold it to collection (DCS). They are hounding me now offering me option to pay in full, or settle for a lower amount. I am willing to pay the loan off if they remove any default reference from my credit. Can I get them to do this.? If not, should I pay the settlement amount or full amount and which would be better for my credit?

No it was not sold to GC services...Citibank still owns if it was a private loan.

The only way to get it off your credit report will be to file a police report as fraud. Without filing a police report, they will end up suing you, even if payments are being made. You really dont have a choice about paying it if you choose not to dispute it.

I just paid the remainder of my defaulted student loan in full, in one payment, after being in default for 25 years. How long will it take for my credit to be restored?

The loan was 25 years old? Or you had been in default for 25 years. Was anyone reporting it still?

If it was still being reported, you will not see much results until after it drops off.