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Valued Member
Mauveboy
Posts: 28
Registered: ‎03-04-2013
0

Bump after Direct Loan Consolidation?

I'm hoping for a bump after consolidation but I'm not sure how much. EQU=636 and TU=663 right now. My AOA is 17 years. I currently have 6 tradelines, all student loans. 2 student loan accounts are closed. One for $475 is pay as agreed and 3 accounts for a total $6,427.73 are in default and 120+ days delinquent but the date of default goes back ti 2006. My question is, what type of bump am I realistically looking at? Consolidation should give me 7 tradelines dating back 18 years, the delinquencies on my report are all from 6 years ago and the loan will show no late payments. I'm thinking 640-645 EQU and maybe as high as 700 TU? Will the delinquencies drop off 7 years from DoD or 7 years from pay off date?

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Senior Contributor
laz98
Posts: 4,292
Registered: ‎09-06-2008
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Re: Bump after Direct Loan Consolidation?


Mauveboy wrote:

I'm hoping for a bump after consolidation but I'm not sure how much. EQU=636 and TU=663 right now. My AOA is 17 years. I currently have 6 tradelines, all student loans. 2 student loan accounts are closed. One for $475 is pay as agreed and 3 accounts for a total $6,427.73 are in default and 120+ days delinquent but the date of default goes back ti 2006. My question is, what type of bump am I realistically looking at? Consolidation should give me 7 tradelines dating back 18 years, the delinquencies on my report are all from 6 years ago and the loan will show no late payments. I'm thinking 640-645 EQU and maybe as high as 700 TU? Will the delinquencies drop off 7 years from DoD or 7 years from pay off date?


Welcome to the forums!  :smileyhappy:

 

Maybe I misunderstood your post, but consolidation will give you ONE tradeline, not multiple.  That's the point of consolidation, to not have multiple accounts.  I don't know if you can consolidate your closed accounts with your open accounts, but I would guess the answer is no.

 

You should look into rehabilitation to get your negative accounts positive again.  There are lots of threads here on the forums about it.

Latest scores: Walmart TU: 766. MyFICO TU: ---. DCU EQ: 741. PSECU EX: 756.
Valued Member
Mauveboy
Posts: 28
Registered: ‎03-04-2013
0

Re: Bump after Direct Loan Consolidation?

I choose not to rehab because my credit score is good enough to do what I need to so and I didn't want to wait 9 months. I'm not consolidating closed loans, just the 3 in default and one pay as goes. The defaults are from 2006. I count 7 trade lines from the 6 loans that will now be closed but still on my report and the new consolidated loan, is this incorrect?
Established Contributor
InvincibleSummer3
Posts: 640
Registered: ‎11-20-2012
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Re: Bump after Direct Loan Consolidation?

Consolidation will open one new tradeline, so your AAoA will be affected a bit. The default notation will stay, although the old accounts will show as closed. Your lates will fall off one at a time as they age off.

Honestly, that default notation is a score killer, and that will stay on another 7 years. The impact will lessen a bit as your new account starts to show good behavior.
Valued Member
Mauveboy
Posts: 28
Registered: ‎03-04-2013
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Re: Bump after Direct Loan Consolidation?

All the defaults are from 2006. Will the default fall off this year and leave the paid or transferred from the consolidation stay for another 7?
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Senior Contributor
laz98
Posts: 4,292
Registered: ‎09-06-2008
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Re: Bump after Direct Loan Consolidation?


Mauveboy wrote:
I choose not to rehab because my credit score is good enough to do what I need to so and I didn't want to wait 9 months. I'm not consolidating closed loans, just the 3 in default and one pay as goes. The defaults are from 2006. I count 7 trade lines from the 6 loans that will now be closed but still on my report and the new consolidated loan, is this incorrect?

No, you're right, that would be 7.  I was thinking that you thought the new tradeline would be backdated, giving you the 7 tradelines of 18 years.  The consolidation loan would show up as a brand new account, thus dropping your AAoA.

 

As far as the default notations, I am not sure when they fall off.  Student loans don't always have the same quirks other accounts do, so I don't want to give you bad information.

Latest scores: Walmart TU: 766. MyFICO TU: ---. DCU EQ: 741. PSECU EX: 756.
Valued Member
Mauveboy
Posts: 28
Registered: ‎03-04-2013
0

Re: Bump after Direct Loan Consolidation?

They should come off in 7.5 years which would be September for me. I'm just hoping that only the default comes off and the paid or transfered from getting cosolidated stays. One of my defaulted loans goes back to 1993. Losing those would tank my AAoA, but keeping them as paid while losing the default would be great. Ultimately, a 5-10 point jump from no longer having loans actively in default is all that I'm hoping for. I have good enough score for an FHA loan and my DoDs are all 7 years old so it's really the open delinquent accounts that would keep me from being approved I think. At least this was my reasoning for not rehabbing my loans first, same desired result in lease time :smileyhappy:

Valued Member
Mauveboy
Posts: 28
Registered: ‎03-04-2013
0

Re: Bump after Direct Loan Consolidation?

Just an update. I got a score alert yesterday and my Equifax FICO shows a 10 point bump. Upon further inspection this was based on 1 of my defaulted loans now showing paid through consolidation. There are still 2 other defaulted loans with ECMC and one in good standing with Great Lakes  that have yet to appear on the MyFico version of my Equifax report as well as the newly cosolidated loan with Sallie Mae. The MyFico Transunion report shows all 3 ECMC defaults as paid through cosolidation, but not the consolidated Great Lakes or the new Sallie Mae and my score dropped. However according to CreditKarma which uses Transunion my score went up 5 points. I expect when everybody reports at the end of month for things to end up with that 10 point bump remaining pretty solid and for Transunion to level off as well. The good news is my scores should only go up from there!

Regular Contributor
rm3
Posts: 198
Registered: ‎03-02-2012
0

Re: Bump after Direct Loan Consolidation?

How long did it take for your consolidation to go through? From application to credit report updating?
Starting EQ Fico: 536 (3/12)
Current EQ Fico: 649 (9/13)-lender pull
TU Fico: 684 (8/13) 711-lender pull 9/13
EX Fico: 646 (8/13) 655-lender pull 9/13
Valued Member
Mauveboy
Posts: 28
Registered: ‎03-04-2013
0

Re: Bump after Direct Loan Consolidation?

I did the application online on Feb. 27th and the payments were disbursed on April 3rd. I started to get the score alert updates on April 10th but Sallie Mae and Great Lakes do their reporting at the end of the month so I dont think everything will be updated until the beginning of May. I would say count on the whole process taking at least 60 days. It will really depend on timing and when your old lenders and new servicers report. Had my loan disbursed at the end of March instead of the beginning of April all reports would be correct now so a few days difference can mean a longer waiting time


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