Know How Your Loans are Affected

Your credit report is a record of your history as a borrower. It's maintained by a consumer reporting agency based on information reported by your existing and prior lenders. Other financial obligations such as liens, judgments, medical debts, and other debts may appear on a credit report as well.

While other consumer reporting agencies may produce reporting, Equifax, TransUnion, and Experian are the most recognizable names in the reporting industry.

When you apply for new credit, potential lenders may review your full credit report, but they often make decisions based on your credit score. Typically, scores range from 350 – 850. The weight any particular lender gives to credit scores varies by lender and is entirely determined by the lenders themselves.

Your financial habits are reflected in your credit score — an important number. Credit scores offer lenders a glimpse at your financial practices, with various factors such as your bill-paying habits, indebtedness, and how you've handled past financial hurdles captured in a single number.

Accessing your credit history is easy – and once per year it's free, too! Request your free credit report from Experian, Equifax, and TransUnion.

Go to AnnualCreditReport.com.

TIP - Thoroughly review your credit report annually. It's one of the most efficient ways to identify suspicious activity such as uncovering accounts you didn't open or finding unknown sourced or credit inquiries. If you find suspicious activity on your credit reports, call your local police or sheriff's office to file a report of identity theft. Whenever identifying suspicious activity immediately contact any of the three major credit reporting agencies to activate an “initial fraud alert.” This alert enables creditors to contact you before opening new accounts. As soon as the credit reporting agency confirms your fraud alert, the other two national agencies will automatically be notified and initiate fraud alerts as well.

Your credit score may be the key factor in many borrowing situations for financial institutions who attempt to measure your credit worthiness. It can be the difference between financing your dream car or, sadly, being told you don't qualify for a loan. Negative credit information may reflect on your credit report for up to seven years from when a delinquency began, and bankruptcy data may reflect for up to ten years.

Having difficulty making payments?

If you ever struggle to make your student loan payments, let us know. We have options that could better fit your situation, including plans based on your income. Remember, making payments in a timely manner is essential to maintaining good credit history.

The Fair Credit Reporting Act (FCRA) is a federal law that dictates how financial institutions – such as MOHELA – provide information to the consumer reporting agencies. It sets industry rules which encompass both the protection of the privacy of information, as well as, what and how information may be reported. Accuracy and integrity of information reported is one of our most important obligations under the law.

The FCRA requires lenders and servicers, such as MOHELA, who report information to the consumer reporting agencies to do so with accuracy. We are often asked to provide "courtesy retractions" by our customers, especially if negative reporting had adverse effects. However, please understand, given the requirements of this law, MOHELA is restricted from making removals of accurate reporting.

Credit scores typically range from 350 (poor) to 850 (excellent) depending on the consumer reporting agency and their practices – that's why your scores can differ from credit report to credit report. Additionally, you'll notice your score can change from time to time even if you haven't opened new accounts or incurred additional inquiries.

However, one thing is certain – there are universally accepted best practices you can adopt to understand in an effort to attain the best scores possible. Become credit-aware and understand the meaning of your score and practice good credit building habits.

When we contact consumer reporting agencies with updates to your file, please be patient and allow sufficient time for these changes to be processed. Unfortunately, there's rarely a standard timeline we can provide as to when a consumer reporting agency will act on a request. Once MOHELA has reported updated information, it's up to the consumer reporting agencies to update their system records.

You can always contact the consumer reporting agencies directly to check that your credit report has been updated.

Our commitment to you and credit reporting is simple... our goal is always to furnish accurate and complete reporting. However, if you disagree with any of the accuracy of our reports, it's your right and our obligation to investigate any dispute.

It is important for cosigners and/or co-makers to understand when signing a "note" they agreed to be jointly responsible for repayment. Therefore, cosigners and co-makers will see their joint status reflected on credit reporting until the loan is either paid in full or they are removed from the loan. See the agreement specific to your loan to determine if the release of a cosigner or co-maker is allowable, as well as the condition necessary to do so.

Please note: MOHELA follows the standards established by the Consumer Data Industry Association which requires us to report loans where a cosigner/co-maker has been released as "terminated." Additionally, if the loan was discharged to due permanent disability, the reporting reads as "paid."