Consolidation

[Anonymous]

Hi, I'm new here, well I just pulled out my credit report and I see that I have 8 loans from SM loans (beginning from 2001-2003) with a 0 balance, and of course in 2004 once I graduated college I reconcilied them and I have that loan showing there with the balance (totally understandable). My question is, should I get those 8 zero balance loans off? and if so how to do that? Thanks!! 

P.S. We are trying to buy a house this year and contacted Chase, we are fine but the lender guy said you sure have lots of zero balance loans...

[llecs]

It is reporting accurately....I'd leave it. Plus it is likely helping your avg. age and removing them could easily tank your scores.

[Anonymous]

I read somewhere that consolidating student loans helps your score because the original loans show as paid off.  Is this true?

[llecs]

Unfortunately, consolidating SLs can lead to new accounts being reported. While the old ones will read "$0", the new accounts will lower the AAoA and can lower the score. However, you should always place $$$ savings ahead of a FICO score if consolidating financially helps.