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Every semester I get a new trade line with my student loan. This is going to kill my AAoA!!!!
In the short term, yes it will kill your AAoA. You typically get loan accounts based on the type of loan and I believe the disbursement date. (I may be slightly wrong if you have multiple disbursements a semester for the same loan and can't speak to this exactly but I would expect the originating loan date to be first disbursement date in this case.) This is true simply because you are borrowing an additional dollar amount at a later date. It is a new loan. They are not all rolled into one or consolidated for you prior to graduation.
While this will hurt your AAoA in the short term but soon (and for the long term) will greatly benefit your AAoA. I personally see great benefits to having so many loan accounts on my reports.
Should these be consolidated after graduation? My DW shows several tradelines (for her student loans) though they are all through the same place - she graduated back in August.
@JWatson0405 wrote:Should these be consolidated after graduation? My DW shows several tradelines (for her student loans) though they are all through the same place - she graduated back in August.
Consolidation is not goign to delete the exisitng TL's so it will not help AAoA. It will in fact hurt it when you open the consolidated TL.
Certainly, thanks for the clarification. We have no need to consolidate unnecessarily, I just was unclear as to whether that was something that should have happened, but didn't. We will not consolidating these.
Thanks!
@JWatson0405 wrote:Certainly, thanks for the clarification. We have no need to consolidate unnecessarily, I just was unclear as to whether that was something that should have happened, but didn't. We will not consolidating these.
Thanks!
However, consolidation is overall a good thing if you can consolidate to a lower interest rate loan.