Help me understand this....

[js2787]

Apparently having a bunch of installment loans hurts your score. at least that what the Experian tips tell me.

For whatever reason my girlfriends student loan is setup as three different loans with the same account number. We are trying to raise her score. We plan on paying the small one off. But can we merge the two larger loans into one?

[IMG]http://i58.tinypic.com/2qki5j5.jpg[/IMG]

[SCF]

Having too many installment accounts isn't really a major factor in your score.  You'll find people here with high scores who have 1 installment loan, and others who might have 10-20 student loans reporting the same way as your girlfriend with the same score.  It's a very minor factor, and definitely doesn't hold you back if the rest of your profile is in order.  I honestly wouldn't worry about merging the loans, and instead focus on whatever pay-off plan will help you get the debt taken care of the fastest.

[Anonymous]

Once again, I am going to agree with SCF!  Well, almost agree!  LOL  Let me add just a few thoughts based on my own experience:

1. If you can consolidate those loans, why not do it?  SCF might be right to say that it wont immeadetly improve your credit score, but why not make it easier to track your payments, make your payments and look at ONE sheet of paper each month instead of multiple sheets.
2. Our wise a good frind SCF also uses a phrase here that is probably the MOST important one:  "if the rest of your profile is in order".  Take a hard look at the total report using score tracker and I am sure you might find some things you havent noticed that are affecting your score.
3. Any way you do it, pay the loans ontime and pay them off.  If you ARE going to leave multiple loans on your report, perhaps it is good idea to make regular payments on three of them, and make double payments on the fourth one to pay it off earlier.  Then, when you are down to three loans, make double payments on the third one....well...you see where I am going here.  

I got divorced nine years ago.  My credit score went down from 800 to 520.  It currently sits at about 710.  It took years of renewed fiscal dicipline, patience and much humility to bring myself back from the brink.  As I wrote in another posting today........there is no substitute for paying creditors in full as agreed.  But , with great respect and a hat tip to SCF, I dont see why consolidating those loans is a bad idea.  But you should be proud of your self for giving it your best.  

[pizzadude]

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@js2787 wrote:

Apparently having a bunch of installment loans hurts your score. at least that what the Experian tips tell me.

For whatever reason my girlfriends student loan is setup as three different loans with the same account number. We are trying to raise her score. We plan on paying the small one off. But can we merge the two larger loans into one?

[IMG]http://i58.tinypic.com/2qki5j5.jpg[/IMG]

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Ignore the scoring advice ( and the FAKO score ) from the Experian website.   It behaves differently than FICO scoring and can't be correlated to it.

[skigirl916]

I technically have 12 student loans reporting as individual trade lines, despite having consolidated them years ago.  

The number of student loans doesn't have a negative impact.  I'll tell you what does: missing/being late on just one payment, because while you might pay one bulk payment as part of your consolidation, it will report as 12 separate late payments.  And that, my friend, is very, very, (whimper!) very bad.  So, don't let that happen.  Rather, have consistent on-time payments for all those trade lines, and your payment history will weigh heavily in your favor.