New Contributor
SMikulski49
Posts: 52
Registered: ‎03-09-2009
Private student loan - Revolving account or installment loan?

I co-signed on a stuent loan. We qualified for 75,000 max but so far she only took 6,573. This is reporting as a revolving account, the 6,573 amount is added to all my caredit card balances. Why do my student loans report as installment loans and this one reports as a revolving account when its just a personal student loan taken out. Is this good or bad that its showing up like this? When I click on details for this account it says largest past balance 75,000, under descriptions it says line of credit and payment deferred.

 

Thanks for your help everyone

 

Stan


Starting Score: TU-775; EQ-799; EX-766
Current Score: TU-775; EQ-828; EX-828
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MarineVietVet
Posts: 14,139
Registered: ‎07-14-2009
Re: Private student loan - Revolving account or installment loan?

 


SMikulski49 wrote:

I co-signed on a stuent loan. We qualified for 75,000 max but so far she only took 6,573. This is reporting as a revolving account, the 6,573 amount is added to all my caredit card balances. Why do my student loans report as installment loans and this one reports as a revolving account when its just a personal student loan taken out. Is this good or bad that its showing up like this? When I click on details for this account it says largest past balance 75,000, under descriptions it says line of credit and payment deferred.

 

Thanks for your help everyone

 

Stan


 

I don't know a whole lot about student loans but I thought ALL SL's were considered installment. But I could be wrong. Have you contacted the lender about this? It could just be coded incorrectly.

 

Because it's included as a revolving account it is most definitely hurting your score.

 

 

 

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

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laz98
Posts: 4,334
Registered: ‎09-06-2008
Re: Private student loan - Revolving account or installment loan?

aren't lines of credit considered revolving?  because they don't have a set balance?

Latest scores: Walmart TU: 769. MyFICO TU: 769. DCU EQ: 716. MyFICO EQ: 780. PSECU EX: 756. MyFICO EX: 780.
Moderator Emeritus
MarineVietVet
Posts: 14,139
Registered: ‎07-14-2009
Re: Private student loan - Revolving account or installment loan?

 


laz98 wrote:

aren't lines of credit considered revolving?  because they don't have a set balance?


 

That's true and it is listed as revolving but I just don't know enough about SL's to comment further. I always thought a SL was an installment loan. That shows what I know. (Or didn't know).

 

 

 

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

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Senior Contributor
laz98
Posts: 4,334
Registered: ‎09-06-2008
Re: Private student loan - Revolving account or installment loan?

OP, are you POSITIVE that you applied for a student loan?  it sounds like maybe you got a line of credit that CAN be used for a student loan, which is why it is reporting as a line of credit.  a student loan wouldn't report as you using $6k out of $75k, for example.

Latest scores: Walmart TU: 769. MyFICO TU: 769. DCU EQ: 716. MyFICO EQ: 780. PSECU EX: 756. MyFICO EX: 780.
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haulingthescoreup
Posts: 28,115
Registered: ‎04-01-2007
Re: Private student loan - Revolving account or installment loan?

Looks like you included this post on a different thread that you have going on Credit Cards about a card being reported as lost or stolen. I replied to you there.

 

I agree that you need to determine how this thing is really reporting, as I indicated on the other post.

 

In general, the forums mods request that you not post the same question on multiple boards, as your replies wind up getting scattered around, as has happened here.  :smileyhappy:

* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
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SMikulski49
Posts: 52
Registered: ‎03-09-2009
Re: Private student loan - Revolving account or installment loan?

Sorry for posting on both threads, I wrote the other one and then realized that the second part of my questions is more loans related so i posted it here as i thought i would get more responses.

 

I will give my credit union a call and ask them, last time i checked my credit report i didn't notice it showing up like that. My transunion report does not even show this loan on the report. 

 

Having this report as revolving account do they think its a credit card or something? i mean i am using 6K out of 75K available so i would see how this can go under revolving accounts. 

 

I dont mind cz my credit score is getting higher and higher every time i check it, i am just curious if she pays off the loan off will that be like closing a credit card? and that in fact would lower my credit score?  

 

just curious how it all works hehe

 

thanks for all your comments guys, id be lost with out you :smileyhappy:


Starting Score: TU-775; EQ-799; EX-766
Current Score: TU-775; EQ-828; EX-828
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haulingthescoreup
Posts: 28,115
Registered: ‎04-01-2007
Re: Private student loan - Revolving account or installment loan?

No prob. It's easy to get into an "Oh, and also..." frame of mind when posting.  :smileywink:

 

Lines of credit are also considered revolving credit. Revolving means you can borrow (charge) against the credit limit, pay it back, and then borrow it again. Installment means you can borrow against the credit limit, but once you've done so, you can't borrow again, even if you pay it back. Sorry, I know that's kind of elementary, but that's why lines of credit fall into the same category as credit cards.

 

If the underlying full reports also show this as a revolving line of credit, rather than an installment loan, then that's how it's being scored. However, if it is, that high CL means that it's being ignored for calculating revolving util. So it's like having a revolving TL (tradeline; credit account), but it's neither helping nor hurting util. Hope that makes sense. :smileytongue: It's definitely an odd situation.

* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
New Contributor
SMikulski49
Posts: 52
Registered: ‎03-09-2009
Re: Private student loan - Revolving account or installment loan?

As long as it is not hurting me then I do not really care how it is reporting. I am slowly trying to get my credit score to reach 800+ then I will be satisfied :smileyhappy: everytime I check my credit score it seems to go up and up so I am doing pretty good. So far the only thing that is hurting me is the short credit history, but only time can fix this now.

 

I have learned a lot reading these forums and having you guys answer my questions. I would never be able to make it this far with out you guys so thanks to all of you :smileyhappy:


Starting Score: TU-775; EQ-799; EX-766
Current Score: TU-775; EQ-828; EX-828
Goal Score: TU-800+; EQ-850; EX-850


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MDfive21
Posts: 150
Registered: ‎10-17-2010
Re: Private student loan - Revolving account or installment loan?
[ Edited ]

oops