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Question for the Money Doctors

Question submitted on Dec 3, 2013.

Question

I was 2 months late on my student loan. It was reported to the three credit bureaus. My credit score has dropped. I have since paid the account current. Will that bring my credit score back up since I have made the account current? I''m in the process of buying a house. Thank you,

Answer

According to Experian, one of the three major credit bureaus, delinquencies will stay in your credit history for 7 years. There is no immediate fix. Only a pattern of timely payments, minimal debt, and limited credit applications will repair your credit history. The older the late payments become, the less effect they will have on your score and on lending decisions.

However, if this was a one-time occurrence you could explain that to the lender. Some lenders may be more lenient with a late payment on your credit report when applying for a home mortgage given the home purchased will be the collateral for the loan and the primary residence of the borrower.


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