topic Re: Student Loan's decreasing credit score in Student Loans

Student Loan's decreasing credit score

Anonymous — Sun, 06 Mar 2011 22:37:14 GMT

Well I recently had my student loans report on my credit, and I seen a drop in credit score of 57 points, I know this is to be expected because it lowers my AAoA, my question is since this reporting isn't a bad thing, when can I expect my credit score to rise again? I've been working hard to raise my credit, just got it to 650 last month and now its 593, real bummed out.

Re: Student Loan's decreasing credit score

Anonymous — Mon, 07 Mar 2011 02:55:08 GMT

I guess time is the only real answer on this one right.

Re: Student Loan's decreasing credit score

Anonymous — Mon, 07 Mar 2011 03:46:33 GMT

Hi there.

It's a slow Sunday night and there might not be any SL gurus come along until tomorrow but someone will be here to help.

Just don't feel like you're being ignored.

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 2/11-816, TU - 2/11-782

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

Re: Student Loan's decreasing credit score

Tazman81 — Mon, 07 Mar 2011 15:17:13 GMT

Hi tj:

Do you know what your AAoA was prior to the student loans being added? Also, how many student loans were just recently reported on your credit?

What other items changed on your credit? Did any credit cards report a balance? Are there any baddies on any of those student loans that are just now reporting? Most that I have come across saw a temporary drop of about 20pts or so. I am not saying that the drop is incorrect, but it just seems to be an excessive drop in score just because your student loan started to report.

Re: Student Loan's decreasing credit score

Anonymous — Mon, 07 Mar 2011 17:31:17 GMT

@Tazman81 wrote:
Hi tj:

Do you know what your AAoA was prior to the student loans being added? Also, how many student loans were just recently reported on your credit?

What other items changed on your credit? Did any credit cards report a balance? Are there any baddies on any of those student loans that are just now reporting? Most that I have come across saw a temporary drop of about 20pts or so. I am not saying that the drop is incorrect, but it just seems to be an excessive drop in score just because your student loan started to report.

Well the average AAoA was 3 years. 2 loans were listed, no derogs on the loans reads OK, don't have to pay on them till I graduate. Turns out my Experian reported that I had no accounts in delinquency, when in reality the report showed 3 delinquencies, so it just updated that there was delinquencies, hence the 57 point drop. I am in the works of paying off these debts, and hopefully by april they will be closed and paid. Transunion actually went up 13 points now at 662, 2 new accounts and made payments on 3 of the delinquencies and lowered the total amount owed to those bills. I wonder if the 13 point jump to was because I lowered the amount owed on those delinquent accounts. I owe about 2 grand.

Re: Student Loan's decreasing credit score

Tazman81 — Mon, 07 Mar 2011 20:02:59 GMT

@Anonymous wrote:
@Tazman81 wrote:
Hi tj:

Do you know what your AAoA was prior to the student loans being added? Also, how many student loans were just recently reported on your credit?

What other items changed on your credit? Did any credit cards report a balance? Are there any baddies on any of those student loans that are just now reporting? Most that I have come across saw a temporary drop of about 20pts or so. I am not saying that the drop is incorrect, but it just seems to be an excessive drop in score just because your student loan started to report.

Well the average AAoA was 3 years. 2 loans were listed, no derogs on the loans reads OK, don't have to pay on them till I graduate. Turns out my Experian reported that I had no accounts in delinquency, when in reality the report showed 3 delinquencies, so it just updated that there was delinquencies, hence the 57 point drop. I am in the works of paying off these debts, and hopefully by april they will be closed and paid. Transunion actually went up 13 points now at 662, 2 new accounts and made payments on 3 of the delinquencies and lowered the total amount owed to those bills. I wonder if the 13 point jump to was because I lowered the amount owed on those delinquent accounts. I owe about 2 grand.

How old are the deliquencies on your account? You likely saw an increase on your TU report because it is now showing some accounts with a good payment record as opposed to just the ones that were deliquent. Also, depending on how old the deliquencies are, that can account for the increase as the older the deliquencies get, the less they hurt your score. Of course with so many changes, it is hard to tell exactly what one specific item is doing. Continue what you are doing to get those deliquent balances paid off, and then you will have to give it some time for your scores to rebound.

Re: Student Loan's decreasing credit score

Anonymous — Mon, 07 Mar 2011 20:37:06 GMT

Thanks for the help tazman, you are wise beyond your years..lol ..jk, but thanks for the input.