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score decrease question

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SHEB3
New Member

score decrease question

I had a student loand discharged through disability, but it shows transfered/sold on credit report, but it dropped my score 17 points, will the score go up once they completely delete account of credit report?

Thanks

Message 1 of 6
5 REPLIES 5
FireMedic1
Community Leader
Mega Contributor

Re: score decrease question

Yes you matched SSI Disability for discharge of the SL debt. But I dont believe it will be deleted from your reports. That will happen 7 yrs afterwards from what I understand. No mention of it here. Like many others who got released from paying back their loans with PSLF still have it on their accounts with a $0 balance. If you have no other loans. Thats usually the score drop for no open loans. Im no expert. My BK was discharge. But its still on my my reports.

https://www.ed.gov/news/press-releases/over-323000-federal-student-loan-borrowers-receive-58-billion... 


Message 2 of 6
SHEB3
New Member

Re: score decrease question

Thanks for replying, but if it was to be deleted will the score increase, just wondering because I have a letter saying it will be deleted, but it's showing closed, transferred/sold $0 balance paying/paid as agreed., let me know if you find out anything else and thanks again!

Message 3 of 6
805orbust
Valued Contributor

Re: score decrease question

@SHEB3 that question is ridiculously complex to answer. There are too many variables to consider without much more information given.  We're there any late payments  and are they showing up?  We're they 30, 60, 90, 120 days late? How long ago were they?  If the answer is yes, then you'll see an improvement. If it's the only open account you have then no. This is only one variable out of 1000's that the FICO algorithm takes into account when calculating a score. 

 

If you can provide a little more info about your profile (i.e. #of accounts, length of history,  utilization % on cards, inquiries, any derogatory info) there are some pretty sharp cookies here that may be able to assist.  Best of Luck either way on your journey. 

 



Message 4 of 6
FireMedic1
Community Leader
Mega Contributor

Re: score decrease question


@SHEB3 wrote:

Thanks for replying, but if it was to be deleted will the score increase, just wondering because I have a letter saying it will be deleted, but it's showing closed, transferred/sold $0 balance paying/paid as agreed., let me know if you find out anything else and thanks again!


Once again. If it gets deleted and you have no other open installment loans. That will take pts away since you fell out of the credit mix. Cards and Loans. Agree with @805orbust . If theres lates. It may stick around.


Message 5 of 6
SouthJamaica
Mega Contributor

Re: score decrease question


@FireMedic1 wrote:

@SHEB3 wrote:

Thanks for replying, but if it was to be deleted will the score increase, just wondering because I have a letter saying it will be deleted, but it's showing closed, transferred/sold $0 balance paying/paid as agreed., let me know if you find out anything else and thanks again!


Once again. If it gets deleted and you have no other open installment loans. That will take pts away since you fell out of the credit mix. Cards and Loans. Agree with @805orbust . If theres lates. It may stick around.


True that if one's only open installment loan is closed, there is a point loss, but that is due to the lack of an open loan, not to a change in "credit mix". As long as a closed loan appears in the reports, it continues to be factored into "credit mix".


Total revolving limits 657200 (536700 reporting) FICO 8: EQ 706 TU 710 EX 708

Message 6 of 6
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