Length of time student loans should be reported

[Anonymous]

Hi,

I have a question. I've looked through the board and didn't see anything I thought addressed this, but I'll post to see what feedback comes my way.

I originally took my student loans out in 1989. Since then I have refinanced and consolidated them and have a really good low rate. I pay the loans on time etc. My problem is that when I look at services that rate my score, I am told that I have too many open installment accounts. Even though the original loans from 1989 have been paid off by refinancing into a new loan, the old loans still show on my credit report. It looks like I have 10 student loans when in reality I only have one which I pay on time. It seems to me that if these old accounts still should be reported, then they shouldn't count against my score but they are. I've disputed that before but the credit bureaus told me those can stay on there by law. I didn't understand the they provided and the person I spoke with on the phone couldn't help me understand it either. Can anyone explain that to me?

[Anonymous]

Good accounts will remain fro up to ten years after being paid.  This is  good thing.  However, try balancing it out with other types of credit such as revolving cards, or lines of credit .  If thats the only thing bad on your report, I wish I were you

[Anonymous]

They are generally helping you.

I have something like 27 student loan tradelines (with sales of loans and consolidations), so I feel your pain.

[Anonymous]

Brammy and Skiffy, thanks. It doesn't feel like they are helping me, but I guess I'm just being a little obessive. Those aren't the worst things on my report. I do have an old tax lien and a few charge offs. They are old though and are marked as paid. Considering that, it just bothered me that every score analyzer I use says I have too many installment accounts. I have my student loans, a smaller loan I took out to help with my wedding and 3 credit cards. I don't think that's too many.

Message Edited by spencet30 on 03-27-2007 05:02 PM

[Anonymous]

If a student loan has sixty-day lates, and then paid for a year on time before it's paid off -- it'll appear bad for seven years, then good for another 11. Tradelines with lates in the middle do eventually become all good.

[Anonymous]

"Good accounts will remain fro up to ten years after being paid. "

At least ten, Not upto ten. Good information generally has a minimum time limit, but no maximum. Vice versa for bad info (no min, but max).

[Anonymous]

So I guess the key here is that these loans aren't paid off yet. This is why they are still appearing? As with the loan from 1989, it was paid off because I refinanced it, so the loan is still active really. Is that right? This is going to be on my report for at least ten years after the loan is paid in full?

[Anonymous]

There is no requirement in the FCRA to report good information for any period of time at all. Read carefully.

The CRAs generally report for at least ten, but they can (and do) occasionally yank old closed positive tradelines if your file gets "too large."

This is why I have 13 more tradelines on Experian than on Equifax.

[Anonymous]

You are right that there is no requirement for the creditor to report information as long as they don't report the good they can't report the bad.  However, once good info is reported it will remain on the file for approx 10 yrs Now if they sell to a collector the only thing reported is bad.

Message Edited by Brammy on 03-28-2007 07:03 AM

[Anonymous]

Sorry, they are permitted to report only negative information.

I wish there were a requirement to report positive information, but there isn't.

However, we're certainly free to lobby on our behalf with congress.