What, if any, affect will forbearance have on my credit score.
I'm on a Sallie Mae loan w/ my daughter, and she requested, and received forbearance on our loan for 2 months. When I called for clarification, the lady at Sallie Mae told me forbearance will be reported to the big 3, just as a payment or non-payment would be. Is there any way (short of getting my credit score, to review it for a change) to confirm that the forbearance will not negatively affect both our credit scores?
Terry Says
Supposedly, and that's the important word, supposedly a student loan deferral or forbearance will not affect your credit score. However, there are a couple of caveats. If you wait to get into one of these programs after you have missed payments or been late on payments, that fact will impact your credit score. Also, we are talking about credit scores from the major credit bureaus. But many credit grantors use different algorithms to evaluate credit for specific purposes. So there is no guarantee that forbearance or deferral won't have an impact. Still, it is better to make these arrangements now -- before you get into credit trouble.
