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Not so fast....
I got an alert on Equifax today saying my $30k loan from Direct Loans Consolidation (The Govt Consolidation) was closed. And I thought, "This has to be a mistake. It's closed? No way did I get 30k for free." LOL.
Well it's not a mistake. It's correct, however, they are splitting all of your loans that you have into 2-3 separate loans. So yes, you will have 3 loans showing up on your credit report instead of one now, if you had consolidated years ago which I did.
I spoke to 3 different people and they said it will not report utilization or count towards any ratios or credit scoring. I find this sort of hard to believe but all 3 people said the same thing.
I am VERY cautious about this. I'm really irritated. For some reason I know my score is going to go down. I seriously don't trust what these reps said.
If they split it into three loans with the original opening date, I wouldn't think it would do anything to your score except it would affect number of accounts with balances, but that is minor.
If they set it up as three new loans with a current opening date, I would think it would lower your AAoA, which may effect your score.
But I don't see how it will affect utilization. Your utilization is going to stay the same, and installment utilization has very little effect on your score.
Both my direct loans started reporting "closed due to inactivity" today!
I haven't received any alert from MYFICO yet.
I too am worried if it will affect my score - I'm in the middle of a mortgage! And mine are NOT consolidated. Just two seperate loans.
Mine too but their website change over has messed my account all up now this woorries me. A closed account with a large balance showing cannot be good regardless of my score.
Well I got a MyFICO alert today. No change to my score though ...whew!
@wamcon wrote:Mine too but their website change over has messed my account all up now this woorries me. A closed account with a large balance showing cannot be good regardless of my score.
Once they open up the new tradelines, if you still have this reporting with a balance on the old loan and balances on the new loan, should be a fairly simple fix. I had a loan that was consolidated into another loan but the original loan was still reporting a balance. I filed a dispute and it was corrected pretty quickly.
I just got this alert this morning as well. Really frustrating that their website is garbage and that no one picks up at CS. They won't pick up the phone, but have no problem with restructuring our loans and reporting lates. Bye bye, good credit!
Yep. Got a SW alert today that my loan is sold and balance is zero. Came directly to this site. Currently on hold w/ them. Was worried they'd report me late this month since I couldn't log in to pay my bill, but apparently that's not something I need to worry about anymore.
Yep, my AAOA is TOASTED!
FINALLY got through. The CSR says I'm crazy that they just updated late this month which is why the balance is showing as zero. She says wait til next month (She says they report on the 3rd Sunday of every month btw) and if things are still looking weird to send them a copy of my credit report. She says she has gotten NO other calls from people that got credit report alerts. She was extremely irritated with my frantic ways. She nearly hung up on me!!!!!
Well it's definitely not just you.
Mine updated to closed last week; now it shows transferred/sold and zero balance. I haven't called them though.