What happened with your credit cards after student loan default?
Posted by KHMWG7@reddit | studentloandefaulters | View on Reddit | 9 comments
Recently had two private student loans charged off. I have one credit card that I’ve had for almost 3 years now. Just curious on how your credit card(s) were affected after you had a loan charged off/default. Did they lower your credit limit? Did they close your account? Or did it have zero effect?
Just trying to get a sense of what is to possibly come. I know my credit score will drop from the charge off, therefore opening a new cc will be quite difficult. But curious about credit cards preexisting to the default.
716TLC@reddit
I'm past my SOL with Navient. Most of my credit cards didn't change at all, but I had long relationships and great payment history with them. Some of my cards are old enough to be high schoolers LOL. One card lowered the credit limit a couple of times in a row - it's been steady about a year now. Another card raised my interest rate. Other than that, credit score tanked for the default, started increasing about 2 years after default. I have a couple more years before the loans drop off & credit will be back to normal for me.
Fit_Falcon_930@reddit
How many years does it take loans to drop off ?
Qws23410@reddit
As long as you don't apply for a credit increase or report changed income they won't do a hard pull on your CRA's. Just pay your bill on time and they won't investigate your credit history. IME.
Sensitive-Self-3803@reddit
How did you have them charged off?
plonk_family19@reddit
Oh man, it was a mess! I had to get my credit cards to take a break too, they were working overtime trying to cover everything!
Hieronymau5@reddit
I'm over a year into my default; there's been no change to my credit cards or their limits (8k, 11k, 16k iirc).
DisembarkEmbargo@reddit
I didn't have a credit card before I defaulted I got a secured credit card after I defaulted. And my secured credit card just became unsecured and they increased my credit limit. I defaulted I think now maybe 3 years ago and I settled probably about a 2 years ago? Either way, my credit is like A-Okay already.
dustystar05@reddit
I’m a year in default with navient and while if affected my credit score it didn’t touch my credit cards. I have a great on time history with all my card which I think helped, however due to the charge off they would. It up my limit when I asked.
SettleBankDebt@reddit
It will affect your credit score. They could lower the score or close the account, it's a roll of the dice. however your main concern should be the collection activity that will commence regarding the charged off accounts. They could send to a collection agency or sell the debt or worse file a law suit depending on how much you owe.