Reporting in error question

[Anonymous]

Im new to the forum so forgive me but I do have a question. I pulled my credit report and Sallie Mae is reporting my high credit limit higher than my original loan as the interest was added after. Meaning, say the principle loan was for 8000 plus 2000 interest. they are saying my high limit is 8000 but my balance is 10000. The is causing my debt ratio to be out of wack and credit score going down. Are they committing a violation of the federal credit act beings they are reporting information inaccurately? What can I do to fix this. Ive read others have this problem and Sallie Mae and CBs refuse to do anything or say they are reporting correctly. Any advise on this would be appreciated.

Thnx in advance.

[llecs]

I'll defer to others on the reporting legality of it all. I'd guess that it is reporting OK because the org. loan amount was $8000 and not $10,000. Bumping for others on that one. Per FICO scoring, I hazard a good guess and say that it isn't hurting you like you might think. Installment utilization is a teeny tiny part of FICO scoring. I bet if you paid off $9,999 tomorrow leaving a $1 balance, and that reported, your score wouldn't move.

[Anonymous]

Morgage Loan officer was the one who brought it to my attention. Stated it needed to be corrected for my score to be where it needed to be approved for the loan because I have 6 loans with them stating the same scenario. That's why I brought it to the table here so maybe could get some guidance on how to start with correcting it.

Thanx!

[llecs]

OP, I'll zap this over to Mortgage Loans. There are some occassional pop-ins by mortgage lenders and maybe they'll give an opinion based on their perspective. These SM accounts aren't reporting as a negative or show any lates, right?

[Anonymous]

I had 1 30 day late payment on the SM in past 2 years. However when I do a breakdown of the score it shows my debt ratio at 132% and I don't have any credit cards now or anything that would show my debt ratio that high or anything even close to maxed out. I don't even have a morgage or anything and my car payment i send to my ex wife as she paid off the car loan to get her name off the account so car payment isn't even getting reported to CB. So nothing else should be reporting or anything. Which I gather based off the morgage lender and this anaylsis everything points to SM.

Thanks

[Booner72]

OOPS - I was going to comment but I read your post wrong the first time.  Good Luck.  SL's are stressful

[203bravo]

Has your SLs ever been in a deferment period?  If they have then the interest that accrued during the deferment would have been capitalized - and added to the principal amount.

[ShanetheMortgageMan]

I've never known the balance:limit ratio on an installment loan to impact a credit score.

[llecs]

---

@ShanetheMortgageMan wrote:

I've never known the balance:limit ratio on an installment loan to impact a credit score.

---

I did some checking around, if you know what I mean, and there is a slight chance your FICO can be impacted if it reported in that manner (over the high limit or balance). YMMV on your credit. However, the impact would be very minimal for all of those TLs combined. I cannot see losing more than a few points in total for all of them, at a worst case scenario.

To the OP....I certainly wouldn't fret about the points, but would be interested in fixing it if I had that reporting, assuming it is reporting incorrectly. I'd also contact the prev. lender to ask why if those SLs were an issue.