General Credit Topics

[Joesh]

So my 7 US Dept of Education loans all got sold to Great Lakes and as a result the 7 loans are now showing as closed on my credit report per Credit Karma, which has dropped my average age of account down below 2 years (An "F" on my CreditKarma report card - oh noes!!!). Am I right in my understanding that Credit Karma is wrong in calculating this average age - I mean, closed accounts factor into average account age for up to 10 years after closing, correct? Interestingly, it (CK) still factors it in for my total accounts.

Great Lakes is reporting it all as 1 loan now (yet to appear on CR)

[lithium78]

Your transferred student loans will still report for another ten years, so it shouldn't affect your AAoA too badly.  My loans were sold by Direct Loans to EdFinancial last year and it's been fine.  Don't worry about Credit Karma.  They are good for monitoring your report, but their score is useless.

[Creditaddict]

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lithium78 wrote:

Your transferred student loans will still report for another ten years, so it shouldn't affect your AAoA too badly.  My loans were sold by Direct Loans to EdFinancial last year and it's been fine.  Don't worry about Credit Karma.  They are good for monitoring your report, but their score is useless.

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YES YES YES.... If you read what CreditKarma does with the Transunion Credit Report they pull it will make more sense of the ups and downs that you see.  Dont stress.

[aussiesareforever]

I had the same thing happen very recently. MY CK score tanked because my loans were tranferred to Mohela.

Rightly said, their scores don't count.

[ceemee2203]

Weird, my scores went up after my transfer to mohela.

Give it a couple months, I wouldn't be surprised if yours go up as well.

[Joesh]

Another question. I was about to pay off 4 of the loans in full (literally next month). If I pay them off, will I hurt my credit score because those accounts may get "lost in translation" and never get reported onto my credit report?

[Joesh]

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Joesh wrote:

Another question. I was about to pay off 4 of the loans in full (literally next month). If I pay them off, will I hurt my credit score because those accounts may get "lost in translation" and never get reported onto my credit report?

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Can anyone comment on this? How long will it take for this transferred loan to hit my credit reports? Will I "lose" some of my accounts if I pay them off in full during this transition period where no accounts are reporting on my credit reports?

[Simply827]

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Joesh wrote:

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Joesh wrote:

Another question. I was about to pay off 4 of the loans in full (literally next month). If I pay them off, will I hurt my credit score because those accounts may get "lost in translation" and never get reported onto my credit report?

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Can anyone comment on this? How long will it take for this transferred loan to hit my credit reports? Will I "lose" some of my accounts if I pay them off in full during this transition period where no accounts are reporting on my credit reports?

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No your accounts won't be "lost." If they are positive trendlines, they will stay on your report for up to 10 years and continue to contribute to AAoA. I can't really speak as to how long it will take for the new loans to show up. It depends on your lender.