e loans to reduce number of installmen t accounts on credit report?
09-10-2012 10:24 AM
So I recently obtained my FICO credit score report, and I have one major issue (that's NOT student loan related). However, I did notice something else on the report and am looking for feedback from the "student loan" forums.
My report says..."Number of your accounts carrying a balance: 20 accounts"
Under the list of accounts, I have the following breakdown:
Open Accounts / Total Number / Accounts with a Balance
Mortgage / 3 / 2
Installment / 13 / 13 <<< ALL STUDENT LOANS
Revolving / 7 / 4
TOTAL / 23 / 19
One of the Mortgage accounts will be going away (it's an unused HELOC which I've now closed)...so the mortgage line will look something like this...
Mortgage / 2 / 2
On the Installment accounts, ALL 13 accounts are student loans...
12 of the 13 are serviced with "Federal Student Loan Servicing," and balances are as follows:
$18,749.43 is Direct Subsidized
$33,731.86 is Direct Unsubsidized
1 of the 13 accounts is serviced by Bank of America (through Great Lakes), and the balance is as follows:
So right now, my student loans are showing up on my credit report as 13 separate "installment" accounts.
The FICO credit report I bought says that "FICO High Achievers have an average of 3 credit accounts carrying a balance."
So I have two questions:
1) Should I consolidate my student loans? (FYI, making the payments in not an issue whatsoever - never been late). If I were to consolidate, it would not be because of a financial hardship, it would be done solely to achieve question 2 below...
2) Would consolidating my loans reduce the number of "installment" accounts appearing on my credit report, and if so, would a reducation in the number of installment accounts from 13 to 1 possibly improve my credit score?