Hi,

I have a student loan (some private lender offered by the small school) account on my credit for a $20,000 credit limit with a $4800 balance that was categorized as "bad debt placed for collection". There was never any collection effort - because the loan was only for $3500 initially. The default date was within the same year as the loan, so the $17000 is not interest. They claim that the initial balance was $20,000! Furthermore, I settled this loan debt years ago! I have the paperwork proving it - which also reflects the actual amount, by the way.

This may be an odd question... but once I have this removed, will this change significantly affect my credit score? I also have a legitimate student loan for $18,000 that is current. Is it somehow offsetting the high balance owed on my $18,000 student loan, considering that this loan looks like is was paid down to less than %25 percent of the original amount owed?

-Ena

Submit all paper work and a written dispute to the credit beaurus and see what they say. If they feel its legitament, they can take it off your credit report.