Score Watch Notice: Account Sold or Transferred

[Kayo]

I received a notice from my Fico that I had a new alert. Apparently one of my student loan accounts was "Sold or Transferred".

This is NOT a collections account. This was always paid on time and I was actually about to send them a payoff. It did cause a slight bump of 2 points in my score. When whomever this account was transferred to starts reporting this account, will my score drop down because of a "new" account being added?

I was just thrown off because this is a government student loan, wasn't even aware that they could be sold or transferred...

	Previously reported	Newly reported
Balance:	$1,241	$0
Past due:	$0	$0
Status:	Pays account as agreed	Pays account as agreed
Last activity:	8/1/2011	8/1/2011
Description:	Student loan	Account transferred or sold Student loan

[kjm79]

If IIRC, my federal loans where bought out by Sallie Mae (or maybe serviced, not to sure).  When Sallie Mae took them over my four separately reported loans all reported "closed/paid as agreed/purchased by another lender".  Then Sallie Mae started reporting 4 NEW tradelines which did cause a decrease in my AAoA.  This was literally all within a 6 month time frame that I got my federal loans who then sold them to Sallie Mae.  So technically, it looked as though I had 8 NEW tradelines in a matter of 6 months.  Not cool!  Whether or not the new tradeline will lower your score depends on whether it messes with your AAoA. 

[Kayo]

It's going to mess with my AAoA because a new account will open with an age that is less than a few months old. Even if my AAoA is 100 years averaging in an account with an age of 1 month is going to mathematically drop that.

When your new accounts opened did they report the ORIGINAL open date under the new trade lines?

[kjm79]

Nope.  New opening dates.  Totally new accounts. 

Do you know your AAoA?  It may or may not drop it.  If you have for example an AAoA of 5.5 years and the new account drops it to 5.3 years, you've still got an AAoA of 5 years...

[Kayo]

My AAoA is 6 Years 3 Months.

[Booner72]

DirectLoans are doing this to a lot of people right now and the concensus seems to be that no one knows what the h is going on.  My loans are zero'd out and when I called they said that everything should go back to normal and if it doesn't to send in my credit report next month.  She said I could send it in now but she is just so very darn sure that it's just temporary, she assured me I still owe all that money and my payments are on time, that directloan will be the servicer, and that I will still qualify for the public service forgiveness in 8 some years.

We Shall See!