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credit score mess

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credit score mess

Hello all. 

I have been working very hard on improving my credit over the last year and a half. I got myself into financial trouble back in 2016 and I've been trying to raise my score since then. Last December I had a score in the low 500s and I have been slowly bringing it up month after month until last month when it got all the way up to 665. I was stoked because my goal is to be at 700 by the summer. One of the first things I did was call my student loan company (great lakes) to combine my 2 student loans into one account and renegotiate the interest rate ... this was a big mistake on my part as I just got notification that my TU went from 665 down to 594 and my only difference being that these 2 9+ year old accounts have been closed (I've opened quite a few accounts the past year to bring up my available credit/etc.) My question is how long will I need to wait for the score to even back out? I've worked so hard at undoing a lot of my past mistakes (paid off a repo, paid every debt I had in full...) and now I have a crap score again ... it's so frustrating. I was hoping to be able to lease a new or buy a used car this June and now I'm just sitting with the idea that I'm not going to be able to do that without being screwed financially on interest rates. 

Starting Scores:
(can only see a year back, though I know my score was in the low 400's in late 2016) Aug 17: TU: 547 EQ: 553
Sept 2018: TU: 630 EQ: 636 Fico: 629

Message 1 of 4
3 REPLIES 3
Senior Contributor

Re: credit score mess

Kinda confusing. You had 2 open student loan accounts and wanted to combine them. Then they showed up closed? Maybe they closed the 2 accounts and are going to make the 1 you requested perhaps? And hasnt showed up yet.





My posts are JMHO. I DO NOT claim to be a FICO expert. Just sharing my experiences from rebuild to recovery after BK DC. My siggy is not to brag at all. Just to show fellow members what can be accomplished when you do it right and play the FICO Credit Game.
Message 2 of 4
Established Contributor

Re: credit score mess


@wonderfulectric wrote:

Hello all. 

I have been working very hard on improving my credit over the last year and a half. I got myself into financial trouble back in 2016 and I've been trying to raise my score since then. Last December I had a score in the low 500s and I have been slowly bringing it up month after month until last month when it got all the way up to 665. I was stoked because my goal is to be at 700 by the summer. One of the first things I did was call my student loan company (great lakes) to combine my 2 student loans into one account and renegotiate the interest rate ... this was a big mistake on my part as I just got notification that my TU went from 665 down to 594 and my only difference being that these 2 9+ year old accounts have been closed (I've opened quite a few accounts the past year to bring up my available credit/etc.) My question is how long will I need to wait for the score to even back out? I've worked so hard at undoing a lot of my past mistakes (paid off a repo, paid every debt I had in full...) and now I have a crap score again ... it's so frustrating. I was hoping to be able to lease a new or buy a used car this June and now I'm just sitting with the idea that I'm not going to be able to do that without being screwed financially on interest rates. 


My guess is that your scores went down due to you not having an installment loan? Closing those accounts won't affect your AAoA as they will still be reporting even though they're closed. My fiance has almost perfect credit, but because he has no installment loan, his scores are still in the 600's. It's literally the only reason given as to why his scores are low. I'm guessing once the new loan reports, your scores will go back up. Don't worry too much about it! You're on the right path and your scores will bounce back with a little time.

 

Quick story:  I got a used car 2 years ago and the stupid dealership took out a loan for me even though I told them the check from PenFed was coming. So I had an account opened and closed (paid off immediately) and it dropped my score 50 freaking points! I was pissed as I had every right to be, but you know what? Within a few months, my scores were back where they used to be.

I’m probably never finding that garden everyone keeps talking about.



Officially collection free as of 3/19/19!!
STARTING SCORES: 377 (11/2013) & 580 (3/2018)
Message 3 of 4
Senior Contributor

Re: credit score mess


@wonderfulectric wrote:

Hello all. 

I have been working very hard on improving my credit over the last year and a half. I got myself into financial trouble back in 2016 and I've been trying to raise my score since then. Last December I had a score in the low 500s and I have been slowly bringing it up month after month until last month when it got all the way up to 665. I was stoked because my goal is to be at 700 by the summer. One of the first things I did was call my student loan company (great lakes) to combine my 2 student loans into one account and renegotiate the interest rate ... this was a big mistake on my part as I just got notification that my TU went from 665 down to 594 and my only difference being that these 2 9+ year old accounts have been closed (I've opened quite a few accounts the past year to bring up my available credit/etc.) My question is how long will I need to wait for the score to even back out? I've worked so hard at undoing a lot of my past mistakes (paid off a repo, paid every debt I had in full...) and now I have a crap score again ... it's so frustrating. I was hoping to be able to lease a new or buy a used car this June and now I'm just sitting with the idea that I'm not going to be able to do that without being screwed financially on interest rates. 


It sounds like you have consolidated your loans?  When the new (single) consolidated loan/tradeline is reported, you should get most of those points back.   Your age of youngest account will have been reset to 0 and your average age of accounts may have taken a hit of some kind if any age threshholds were crossed, but overall, it shouldn't be a huge hit.

The other thing to note is that your loan will be at 100% utilization.  That shouldn't really hurt you unless the two loans you had really low utilization (below 9% aggregate).

Nov 2019


Garden goal: keep on keepin' on
Usually a faithful practitioner of AZE5or6or7; working on AZE1or2 and grumbling about it.
Message 4 of 4
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