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Will my score drop when consolidation reports?

Valued Member

Will my score drop when consolidation reports?

Hi, here's my situation.

 

Defaulted, completed rehab.

 

NO payments were reported during rehab process.

 

FedLoan Servicing reported my accounts as closed, transferred to another provider, zero balance, with all the lates.

 

Once rehab was complete, DOE deleted all collections = huge credit jump (about 50 points across the board)

 

Credit score sees another increase due to reduction in personal finances.

 

Loans were returned to FedLoan Seriving but I was told the transfer didn't happen until after they'd reported.

 

I have 7 closed accounts with them according to my current report. Consolidation has already happened so I'm assuming those 7 will remain closed and I'll see 2 new loans for the consolidation (one sub, one un-sub)

 

Question: Will I see a drop in credit due to balance of personal finances jumping back up another $23,000 or will it be okay since they'll be current?

 

SOOO darn close to buying a house.. like, super duper crazy close to getting the approval. Broker knows about the loans, I just don't want to see a dive in my scores to tank the whole thing.

On the road!
FICO 8 6/15/17 EQ 591 // TU 570 // EX 606
MORTGAGE 6/15/17 EQ 579 // TU 483 // EX 529
FICO 8 11/15/17 EQ 645 // TU 626 // EX 654
MORTGAGE 11/15/17 EQ 620 // TU 596 // EX 671
Message 1 of 6
5 REPLIES
Contributor

Re: Will my score drop when consolidation reports?

Some of this sounds like a DTI issue rather than a reporting issue...? Have you had anyone look at your score to see what needs improved?  For example, are there PIF collections accounts that may need to fall off?  Is a CC balance too high somewhere?  I would give your broker a call--he may be able to referr you to someone or a company that can look at your score & strategically try to fight certain reporting that is dragging your score down.  My broker did, they are awesome.

 

Or, even without going to a separate company, what has he said?

My FICO Scores:
9/17: EQ - 542 / TU - 535 / EX - 506 // Mortgage: 553, 545, 486
10/ 17: EQ - 558 / TU - 563 / EX - 586 // Mortgage: 554, 568, 536
11/17: EQ - 630 / TU - 589 / EX - 614 // Mortgage: 606, 606, 572
12/17: EQ - 630 / TU - 624 / EX - 619 // Mortgage: 584, 612, 671





Journey Milestones: Completed Federal Student Loan Rehab in Sept 2017. Settled First Premier Bank CC in August 2017. Constant uphill battle with Navient incorrect reporting on seven (7!) private student loans. No TLs listed in delinquency. Obsessively keeping 2 CC UTI @ 7-9% monthly.

End Goal: Pre-Approval for FHA Spring/Summer 2018
Message 2 of 6
Valued Member

Re: Will my score drop when consolidation reports?


LindysMom wrote:

Some of this sounds like a DTI issue rather than a reporting issue...? Have you had anyone look at your score to see what needs improved?  For example, are there PIF collections accounts that may need to fall off?  Is a CC balance too high somewhere?  I would give your broker a call--he may be able to referr you to someone or a company that can look at your score & strategically try to fight certain reporting that is dragging your score down.  My broker did, they are awesome.

 

Or, even without going to a separate company, what has he said?


Yes, all of that has been looked at.

 

He told me to pay down 2 cards to zero, which I did, but at the time the student loans were non-existant on my credit.

 

I've told him about the loans and sent him the mortgage payment letter.

 

My question was about my score dropping, not the deal falling through due to the new reporting.

 

 

On the road!
FICO 8 6/15/17 EQ 591 // TU 570 // EX 606
MORTGAGE 6/15/17 EQ 579 // TU 483 // EX 529
FICO 8 11/15/17 EQ 645 // TU 626 // EX 654
MORTGAGE 11/15/17 EQ 620 // TU 596 // EX 671
Message 3 of 6
Contributor

Re: Will my score drop when consolidation reports?

Ahhh gotcha..  perhaps i misunderstood... "Question: Will I see a drop in credit due to balance of personal finances jumping back up another $23,000 or will it be okay since they'll be current?"

 

Drop in credit "score".  Again, it looks like your DTI ratio will probably be most impacted.  

My FICO Scores:
9/17: EQ - 542 / TU - 535 / EX - 506 // Mortgage: 553, 545, 486
10/ 17: EQ - 558 / TU - 563 / EX - 586 // Mortgage: 554, 568, 536
11/17: EQ - 630 / TU - 589 / EX - 614 // Mortgage: 606, 606, 572
12/17: EQ - 630 / TU - 624 / EX - 619 // Mortgage: 584, 612, 671





Journey Milestones: Completed Federal Student Loan Rehab in Sept 2017. Settled First Premier Bank CC in August 2017. Constant uphill battle with Navient incorrect reporting on seven (7!) private student loans. No TLs listed in delinquency. Obsessively keeping 2 CC UTI @ 7-9% monthly.

End Goal: Pre-Approval for FHA Spring/Summer 2018
Message 4 of 6
Contributor

Re: Will my score drop when consolidation reports?

My new loan did not impact my scores at all. Both loans report as a single loan about 2 months later. My loans were consolidated with FedLoan.




Fico 8 (11/25/17): EQ 669, TU 639, EX 670
In the garden … till Spring 2018

3/17: Cap1 QS MC ($750 CL); 4/17: Kohls Charge ($700 CL)
5/17: Overstock Store ($2,600 CL); Victoria Secrets ($750 CL)
10/17: Cap1 QS VS ($3,000 SL); Discover It ($9,000 SL)
10/17: HSN/Comenity ($2,650 CL)
11/17: Amazon Prime Store ($1,400 SL); Walmart ($300 SL)

Rebuilding -- Ch. 7 BK (10/26/16). Starting scores: EQ 541. TU 581
Message 5 of 6
Highlighted
Valued Member

Re: Will my score drop when consolidation reports?

Thank you, liv22!! 

On the road!
FICO 8 6/15/17 EQ 591 // TU 570 // EX 606
MORTGAGE 6/15/17 EQ 579 // TU 483 // EX 529
FICO 8 11/15/17 EQ 645 // TU 626 // EX 654
MORTGAGE 11/15/17 EQ 620 // TU 596 // EX 671
Message 6 of 6