4 DIfferent accounts student loans! Same lender

Anonymous · ‎07-20-2009

I am currently attending school and I am getting loans drom SM. Is it standard prectice to show different accounts when award is issued? Is this hurting my score. Wouldn't this lower the AAoA? I'm a worried becasue I am bringing my scores up for mortgage and before I apply I will receive 2 more awards.Please chime .

JoeBJay20 · ‎07-20-2009

Generally the loans are for one semester at a time, so each semester you get a loan is another separate account. But worry not, after you finish school and are ready to begin repayment, you can consolidate all those individual loans into one larger loan, and gain a bunch of paid off positive TLs in the process. Yes this is lowering your AAoA, but that only accounts for a small fraction of your scores. When are you planning to apply for a mortgage.

Anonymous · ‎07-20-2009

Not for another 6 months. Two baddies (CA's) will fall off soon. One is Sept and the other in October. My utilization is at 89%! It will be down to less than 3% in about 4 months. I'm giving the CC companies 2 extra months to report. Right now my scores are EQ 598 TU 602 EX?

JoeBJay20 · ‎07-20-2009

@Anonymous wrote:
Not for another 6 months. Two baddies (CA's) will fall off soon. One is Sept and the other in October. My utilization is at 89%! It will be down to less than 3% in about 4 months. I'm giving the CC companies 2 extra months to report. Right now my scores are EQ 598 TU 602 EX?

From your utilization alone you're probably losing 60-80 points.

Anonymous · ‎07-20-2009

Of course, you'll end up with a huge number of TLs for these loans, which will slightly ding your FICO once you hit the 30+ mark (even after you pay them off and they're closed... how dumb is that?) and stay on your report for up to 10 years AFTER you pay them off. I'll have ten student loan TLs drop off next year, about twelve more the year after (I only had loans for 4 years of school).

Anonymous · ‎07-20-2009

Yeah that is pretty dumb. 10 years huh...wow. So why woould it count against my score?

JoeBJay20 · ‎07-20-2009

It will only negatively affect your score in the short term, it's actually beneficial in the long term as the accounts age.

Anonymous · ‎07-20-2009

If you have more than 30 'accounts' (TLs, whether open or closed) on your report, it counts against you (until some fall off). If you have over 30, you'll see the little red flag if you look at your Fico Score 'Credit-At-A-Glance' page, and look at the total number of Accounts shown.

Message Edited by writemikep on 07-20-2009 07:06 PM

Anonymous · ‎07-20-2009

I didnt know that. Thanks for the information. I'm just a little worried about loosing points when each account is openned.

Anonymous · ‎07-20-2009

All those accounts have helped my AAoA, probably more so than the ding for too many acocunts.

Message Edited by writemikep on 07-20-2009 07:20 PM