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Question #4 Credit Repair: Fraudulent loan amount


enajenkins
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Hi,

I have a student loan (some private lender offered by the small school) account on my credit for a $20,000 credit limit with a $4800 balance that was categorized as "bad debt placed for collection". There was never any collection effort - because the loan was only for $3500 initially. The default date was within the same year as the loan, so the $17000 is not interest. They claim that the initial balance was $20,000! Furthermore, I settled this loan debt years ago! I have the paperwork proving it - which also reflects the actual amount, by the way.

This may be an odd question... but once I have this removed, will this change significantly affect my credit score? I also have a legitimate student loan for $18,000 that is current. Is it somehow offsetting the high balance owed on my $18,000 student loan, considering that this loan looks like is was paid down to less than %25 percent of the original amount owed?

Thanks,

:D Ena

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If they're saying you owe the full 20,000 or something close to that and having that removed from your CR's would bring down your debt ratio I would think.

Anytime we make changes to our CR's, it's going to affect things. Keep in mind, if you're on time with your other payments and everything else is on the level, things should calm down and if your FICO dipped a bit...it'll be back up.

Elyse

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