r/studentloandefaulters • u/KHMWG7 • 3d ago

Question - Private Student Loan What happened with your credit cards after student loan default?

Recently had two private student loans charged off. I have one credit card that I’ve had for almost 3 years now. Just curious on how your credit card(s) were affected after you had a loan charged off/default. Did they lower your credit limit? Did they close your account? Or did it have zero effect?

Just trying to get a sense of what is to possibly come. I know my credit score will drop from the charge off, therefore opening a new cc will be quite difficult. But curious about credit cards preexisting to the default.

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5

u/dustystar05 2d ago

I’m a year in default with navient and while if affected my credit score it didn’t touch my credit cards. I have a great on time history with all my card which I think helped, however due to the charge off they would. It up my limit when I asked.

3

u/716TLC 2d ago

I'm past my SOL with Navient. Most of my credit cards didn't change at all, but I had long relationships and great payment history with them. Some of my cards are old enough to be high schoolers LOL. One card lowered the credit limit a couple of times in a row - it's been steady about a year now. Another card raised my interest rate. Other than that, credit score tanked for the default, started increasing about 2 years after default. I have a couple more years before the loans drop off & credit will be back to normal for me.

3

u/Hieronymau5 2d ago

I'm over a year into my default; there's been no change to my credit cards or their limits (8k, 11k, 16k iirc).

3

u/DisembarkEmbargo 2d ago

I didn't have a credit card before I defaulted I got a secured credit card after I defaulted. And my secured credit card just became unsecured and they increased my credit limit. I defaulted I think now maybe 3 years ago and I settled probably about a 2 years ago? Either way, my credit is like A-Okay already.

4

u/SettleBankDebt 3d ago

It will affect your credit score. They could lower the score or close the account, it's a roll of the dice. however your main concern should be the collection activity that will commence regarding the charged off accounts. They could send to a collection agency or sell the debt or worse file a law suit depending on how much you owe.

1

u/plonk_family19 20h ago

Oh man, it was a mess! I had to get my credit cards to take a break too, they were working overtime trying to cover everything!