Posted on: 13th Jan, 2010 02:46 pm
i had a first and second loan in the same company. i guess the company charged off my second loan and now another company or collection agency i'm not really sure is handling my second loan. my first is under loan modification no decision yet but i'm on a trial plan and paying on time now. if my first in good standing what are the consequences for my second if i continue not to pay it?
Welcome angel,
You should first contact your lender and check out whether or not they have charged off the loan. A charge off has a negative impact on your credit report and will lower your credit score to some extent. Moreover, as a negative item, it'll stay in your credit report for the next 7 years. If it's charged off, then you need to negotiate with them and pay off the dues. They may sue you if you do not pay off the dues.
You should first contact your lender and check out whether or not they have charged off the loan. A charge off has a negative impact on your credit report and will lower your credit score to some extent. Moreover, as a negative item, it'll stay in your credit report for the next 7 years. If it's charged off, then you need to negotiate with them and pay off the dues. They may sue you if you do not pay off the dues.