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Number of Accounts with Balances?

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Loques
Regular Contributor

Number of Accounts with Balances?

How much does the 'Number of Accounts with Balances' affect your credit score? Currently, I have 16, 10 of which are separate student loans. I was considering consolidating the loans anyway (for lower payment and lower interest on higher balances), but I'm wondering what kind of impact this would have. Any ideas?

Current Score (11/2020): EQ: 753 | TU: 731 | EX: 749---Starting Score (3/2010): EQ: 522 | TU: 525 | EX: 520---Goal: All 3 FICO 800+
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3 REPLIES 3
vanillabean
Valued Contributor

Re: Number of Accounts with Balances?

I go by by having balances on less than half of all accounts, including cards and loans, of which at least one must be a card. The impact could be significant for cards, likely a smaller positive for loans.

Message 2 of 4
bdhu2001
Valued Contributor

Re: Number of Accounts with Balances?


@Loques wrote:

How much does the 'Number of Accounts with Balances' affect your credit score? Currently, I have 16, 10 of which are separate student loans. I was considering consolidating the loans anyway (for lower payment and lower interest on higher balances), but I'm wondering what kind of impact this would have. Any ideas?


It has a huge impact.  Currently two of the loans have are student loans and even though I pay one payment to the same entity, it counts twice.  The FICO estmator has a break off for 4 or less.  So I would think as close as you can get to that figure would be for the best.  Having your loan count as one loan would help; if you can also get a better interest rate, I don't see a down side.

Original Mortgage maturity Sept 2044; Refi maturity Dec 2030
Starting Score: EX 751 EQ 720 TU 737 on 4/9/14
Current Score: EX 849 EQ 835 TU 843
Goal Score: 850


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Message 3 of 4
Loques
Regular Contributor

Re: Number of Accounts with Balances?

Thanks for the reply. I don't really have a downside in consolidating, so I think I'll go ahead and apply for it. I was just wondering why my score won't budge even though negatives are falling off. I looked at the reasons given (on myFICO) and interestingly enough, the number of accounts with balances was listed. I wasn't sure how much of an impact that can have, but if I were to consolidate the student loans it would go from 10 to 4!

Current Score (11/2020): EQ: 753 | TU: 731 | EX: 749---Starting Score (3/2010): EQ: 522 | TU: 525 | EX: 520---Goal: All 3 FICO 800+
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