Post # 1
I will keep this short because the reason is a very long story. Both my SO and I defaulted on our student loan payments (3 times) when our credit card was stolen. — Automatically deducted, canceled the card, payments didn’t go through because the card was canceled. FYI I already tried to dispute this with the lender — Now we are desperately trying to raise our credit scores so that we can buy a house in about 1.5 years. How long will this default hurt my credit for?
Post # 3
@Lily_of_the_valley: Did they say whether they reported it? Sometimes you can default on things and they will give you a window to fix the problem….like I almost always pay my car payment late (it’s on an awkward day) but there’s a window so I never actually get dinged.
Post # 4
If it has been reported I think late payments stay on there for 7 years.
Post # 5
Everything on your credit stays on for 7 years. However, you can dispute it. Google how to dispute things on your credit report and it will come up. Essentially, you write a letter to each of the 3 credit agencies asking them to remove the credit inquiry and explaining why it shouldn’t be there (credit card was stolen, etc) and if you have any proof (police report?), then submit that as well. If the other party (lender) doesn’t respond within 30 days, it comes off your credit (or if they respond but don’t have a good reason for it being there, etc). You can get a free credit report once a year by going to freecreditreport.com to see if it’s even on there.
Post # 6
@icetea: I never asked about a window, but I will call them. It actually happened for 3 months before we noticed (shame on us) but our bank told us they re-sent the same card and nothing had to be changed…boy were they wrong! I doubt their “window” includes 3 late payments but it’s worth a shot!
Post # 7
It stays on your report for 7 years but it only affects your score for two. You score is composed of recent activity of two years, but many lenders look at both your report and your score to make decisions. Many credit cards looks at the score first (instant approvals) then look at the report if the score is not in their range.
Post # 8
Why did you and your SO both miss 3 payments?
DH and I have a joint credit card and the bank caught fraudulent charges. It was with his card number. They immediately cancelled his card, sent him one with a new number, but I was still able to use mine.
I think you may have to just wait it out for your credit to improve, as it happening to both of you is going to look pretty suspicious. Contacting the credit reporting agencies is still worth a try though. Good luck!
Post # 9
@AB Bride: It is a business account and not a personal account. The bank said they took care of the charges (it was online fraud charges) and they were sending us a new card but it was going to have the same card # (I thought that was strange). I actually specifically asked them if I needed to to switch the card for automatic payments and they said no the card they were sending is going to be the same. It wasn’t for 3 months when we noticed our payments were not going through on our business account. We called our lender and fixed the problem and got up to date with payments. I explained the situation and they basically said they didn’t care and I was delinquent on the loan. That certainly does NOT look good when you are trying to get a house.