The end of the student loan payment pause, coupled with the return of delinquent loan reporting, has left many borrowers scrambling to manage the consequences. According to the Federal Reserve Bank of New York, more than 9 million Americans could soon see significant drops in their FICO scores, some by over 150 points, due to the reappearance of delinquent student loans on credit reports.

For many, the consequences are immediate: difficulty accessing future loans, such as mortgages and car loans, higher interest rates, and even a reduction in available credit. Those who once had strong credit scores are now finding themselves in subprime territory, creating an urgent need for a solution to rebuild their credit health.

How Student Loan Delinquencies Impact Your Credit Score

Before the pandemic, student loan payments were a routine part of many borrowers’ financial lives. However, with the onset of COVID-19, the government paused payments for more than three years, providing much-needed relief to millions of Americans. During that time, borrowers were not penalized for missed payments, and late payments were not reported to credit bureaus, effectively giving millions a grace period.

But this grace period ended in September when borrowers were required to resume payments. For those behind on their loans, the damage to their credit scores is now becoming apparent. Research shows that a missed payment on a student loan can knock more than 150 points off a FICO score for someone with average credit. For those with subprime credit, the effects can be equally severe. These borrowers may lose access to favorable interest rates, and their ability to obtain new credit can be limited.

Rebuilding Your Credit with CreditStrong

The good news is that you don’t have to wait for your credit score to recover on its own. CreditStrong offers a way to actively rebuild your credit score. Through their range of credit builder loans for every need and budget, you can take charge of your financial future. These loans are designed to help you create a positive payment history, which is essential for rebuilding your credit after a setback like missed student loan payments.

With a CreditStrong credit builder loan that fits your needs, you’ll make regular, on-time payments that are reported to all three major credit bureaus—Equifax, Experian, and TransUnion. As you make these payments, your credit score will begin to improve over time. This consistent payment history shows creditors that you’re capable of managing debt, which will help raise your score by up to an average of 86 points, and ultimately increase your chances of qualifying for loans in the future.

CreditStrong is not just about rebuilding credit; it’s about regaining financial confidence whether you’re facing delinquencies due to student loans or other financial challenges.

Managing High Credit Utilization with Revolv

In addition to student loan delinquencies, many borrowers also struggle with high credit utilization—another factor that negatively impacts credit scores. When you use a large portion of your available credit, it signals to lenders that you may be overextended and could struggle to repay your debts.

If you’re dealing with high credit utilization as a result of student loan delinquencies or other debts, Revolv offers a smart solution. Revolv helps you manage and lower your credit utilization rate by giving you tools to pay down high balances more effectively. Keeping your credit utilization ratio under 30% is one of the best ways to protect your credit score.

By managing your credit utilization alongside your efforts to rebuild through CreditStrong, you’ll improve both the quantity and quality of your credit profile, which will make it easier to regain access to credit in the future.

CreditStrong helps improve your credit and can positively impact the factors that determine 90% of your FICO score.

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