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How does payment plan affect my credit report?


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Got sued for 10+ year old student loan, but now miraculously the opposing lawyer (or school) has agreed to monthly payment arrangement. My credit score is high 500 which I find shocking considering I've never paid a cent back to none of my student loans nor credit card debt (both 10 - 14 years old). Needless to say I'd like to keep whatever magic with my credit score going. How will this new payment plan affect my credit report and score?

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A repayment plan gives the collector the legal right to report the debt (on their own in addition to the original creditor's reporting of it) and essentially estabishes a "new" account.

 

It does not get reported to the bureaus as a new positive account rather it is reported as a collection account.

 

I do not advise folks to sign such an agreement. Let them send you the deal in writing but avoid signing anything titled "repayment agreement'.

 

May The Schwartz Be With You!!

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You should post if it is a Federally back loan or a private one. If its private post your state also to determine the SOL.

I'm pretty sure, but in most cases private student loans as well as government ones lack an SOL.  

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