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NS3458 asked in Business & FinanceCredit · 2 months ago

What will happen if I start making payments on a closed student loan account?

I currently have several closed student loan accounts on my credit report that are in collections and now belong to the government. If I call the agency that is handling the debt and arrange to start making payments again, will this re-open those closed accounts and/or start showing on my credit report that I have an active account again? I just wanted to see if this would affect anything that shows on my credit report. I don't want a new payment plan to somehow negatively affect my credit score, especially if it was better off just showing the account as "closed". Hope this makes sense, thanks.

1 Answer

  • Shay
    Lv 7
    2 months ago

    Most "closed" accounts, good or bad, will fall off your credit report after seven years.

    If you contact the collection agency - you RESET THAT COUNT DOWN.  You could cause the accounts to stay on your report even longer.

    So - if you intend to pay them off - call and make arrangements.

    If you are concerned that you would eventually fail to make payments, then ignore them completely and let time fix the problem.  

    • NS34582 months agoReport

      Thank you! But would my credit score likely increase if I started making payments again and the account reopened? Or would it be better off just keeping it closed? Or how would that work?

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