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Student Loans as New trade Lines each semester???

Established Member

Student Loans as New trade Lines each semester???

Every semester I get a new trade line with my student loan. This is going to kill my AAoA!!!! Smiley Sad

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Message 1 of 7
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Established Contributor

Re: Student Loans as New trade Lines each semester???

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. 

Message 2 of 7
Contributor

Re: Student Loans as New trade Lines each semester???

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.


Starting Score: EQ-484(10/10/2011) TU-533(10/10/2011)
Current Score: EQ-701(1/18/2013) TU-735(1/20/2013)
Goal Score: 750s!!


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Message 3 of 7
Established Contributor

Re: Student Loans as New trade Lines each semester???

They can be, although whether or not that's a good idea depends on what she's trying to accomplish by doing so.
Message 4 of 7
Established Contributor

Re: Student Loans as New trade Lines each semester???


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.


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)
Message 5 of 7
Contributor

Re: Student Loans as New trade Lines each semester???

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!


Starting Score: EQ-484(10/10/2011) TU-533(10/10/2011)
Current Score: EQ-701(1/18/2013) TU-735(1/20/2013)
Goal Score: 750s!!


Take the FICO Fitness Challenge
Message 6 of 7
Established Contributor

Re: Student Loans as New trade Lines each semester???


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.


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)
Message 7 of 7