Does forbearance hurt credit score?
November 7, 2010 by admin
Filed under Student loans
I am currently in forbearance in my Student loan. Will that hurt my credit score if I make each payment on time? How much will it hurt it?
How to get the best student loans
November 7, 2010 by admin
Filed under Student loans
I am currently in forbearance in my Student loan. Will that hurt my credit score if I make each payment on time? How much will it hurt it?
No, having your student loan in forbearance will have no impact on your credit score. A forbearance means you have made a contractual agreement not to pay for a certain length of time that the lender agrees to. Depending on the type of forbearance, you may or may not accrue interest during the forbearance period.
Simply put, the lender agreed to the forbearance which means you are in good credit standing. No report will be made to any credit bureau.
Forbearance does not hurt your credit score, but you should try to get avoid that if possible. Forbearance accrues interest for all the loans you have (subsidized and unsubsidized). A deferment is a better route if you have both of those loans. You can apply directly through the site of most lenders or ask them to send you one. There is an unemployment deferment and an income sensitive one.