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Established Member
Posts: 10
Registered: ‎08-19-2010
0

Student Loan was added to credit report and dropped score

[ Edited ]

Today my student loan for 11k was addred to my credit report and dropped my score from 683 to 555. My loan is still deferred because I completed grad school last year. I read the possible reasons that myfico provided which are:

 

The following are reasons why a change to an account can cause your FICO® score to go up. (A change to an account in the opposite direction can cause your score to go down.)

  • The status of the account improved. For example, the status went from "60 days past due" to "currently paid as agreed". An improvement in account status demonstrates an ability to pay debts.
  • The balance on the account decreased. Generally, less debt is better for your FICO® score.
  • The amount past due on the account decreased. This demonstrates your ability to meet your financial obligations.
  • The credit limit on the account was raised while the balance stayed the same. Since carrying a balance too close to the credit limit is a sign of a consumer who needs credit and cannot pay it back, a higher credit limit actually helps your FICO® score.
  • The history of late payments or description for this account is revised to be less derogatory. For example, if a late payment on your account was mistakenly reported, correcting this on your credit report may help your score.

Is this a temporary decrease because the account was just added to my report or will I have to suffer? FYI I also have 3 credit cards (Amex, 2 Cap 1) that are in great standing, so I don't even know how to increase my score again. I got the alert today and felt so terrible after I saw this.

Established Contributor
Posts: 754
Registered: ‎11-20-2012
0

Re: Student Loan was added to credit report and dropped score

It is temporary. Your AAOA will be affected as it's taken a hit, but this is a short-term loss of score points.

Community Leader
Senior Contributor
Posts: 4,336
Registered: ‎09-06-2008
0

Re: Student Loan was added to credit report and dropped score

Is that a true FICO score?  That is quite a drastic drop.

Latest scores: Walmart TU: 769. MyFICO TU: 769. DCU EQ: 755. MyFICO EQ: 780. PSECU EX: 756. MyFICO EX: 780.
Established Member
Posts: 10
Registered: ‎08-19-2010
0

Re: Student Loan was added to credit report and dropped score

Thank you for the info Invincible Summer.

 

 

Established Member
Posts: 10
Registered: ‎08-19-2010
0

Re: Student Loan was added to credit report and dropped score

It's the Equifax score through ScoreWatch from Myfico. I went ahead and pulled my Transunion score and that is 683 even with the student loan so I'm not sure what is going on with Equifax.

Established Contributor
Posts: 650
Registered: ‎03-01-2012
0

Re: Student Loan was added to credit report and dropped score

That is a huge drop for one new account showing up.  Do you have a full report from before the drop and after?  You should compare two reports carefully to see what changed.


My Starting Score: EQ: 691 (11/30/11) TU98: 726 (11/30/11)
My Current Score: EQ: 779 (04/22/13) TU08: 835 (06/03/13)
DW Starting Score: EQ: 742 (03/02/12) TU98: 748 (03/02/12)
DW Current Score: EQ: 784 (03/11/13) TU08: 775 (06/03/13)
Established Member
Posts: 26
Registered: ‎02-20-2013
0

Re: Student Loan was added to credit report and dropped score

Looks like it just affected the average age of accounts, being that your probably younger since your in school, your history is just shorter.  It probably had a greater affect because of this, should get better soon though.  My student loan reporting recently did this to my score as well.

xd

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Established Member
Posts: 10
Registered: ‎08-19-2010
0

Re: Student Loan was added to credit report and dropped score

I pulled the Transunion report and the Equifax report and the acocunt has  been on both reports since 2003 when I started school( I previously thought the decrease was from a new loan). The reason for the decrease in my score was an increase in my student loan amount by $90. Both accounts show the exact same increase amount so I'm just so baffled as to why my Equifax score would drop to 555  for $90 but Transunion still has me at 683.  Also, I checked one of my credit cards that gives me an Experian credit score and that number is 660.

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