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Debt-to-Credit Ratio on Student Loans

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Valued Member

Re: Debt-to-Credit Ratio on Student Loans

Hey sorry to piggy back but I was looking for someone to explain this to me. You say SL's are almost invisible but i took out a subsidized fed loan a month or so ago and it just reported to the bureaus. I got a 30 point drop on each according to ck and the ex site. I'm not sure why... I've heard they don't affect credit to debt ratio and they certainly don't do a hard pull so I'm very confused. If anyone could shed some light I would be greatly appreciative!






Message 11 of 21
Valued Contributor

Re: Debt-to-Credit Ratio on Student Loans


@SB0328 wrote:
Hey sorry to piggy back but I was looking for someone to explain this to me. You say SL's are almost invisible but i took out a subsidized fed loan a month or so ago and it just reported to the bureaus. I got a 30 point drop on each according to ck and the ex site. I'm not sure why... I've heard they don't affect credit to debt ratio and they certainly don't do a hard pull so I'm very confused. If anyone could shed some light I would be greatly appreciative!

 


That loan is a new tradeline, so you've reset your age of youngest account (AoYA) to 0 and that account may have caused your average age of accounts (AAoA) to drop across scoring thresholds.

 




Garden goal: keep on keepin' on until 2020.
Message 12 of 21
Valued Member

Re: Debt-to-Credit Ratio on Student Loans

Yeah that was the only thing that I imagined could be affected but 30 pts just seemed excessive haha! I just got my last derogatory off all 3 reports and got a big jump so when I saw them all drop again it hurt. Thanks for the response.






Message 13 of 21
Established Contributor

Re: Debt-to-Credit Ratio on Student Loans

The reason Calyx started seems spot on, especially if the new account really offset your average age.
The good news is that you can really ignore some of it. Credit Karma isn't a real FICO score. And your Experian score could be your lowest one! I use the $1 trial on Creditchecktotal occasionally to see all 3. Plus that new account ding is only for 6 months I believe.
It might be a big temporary loss but you also already have a great score. Don't feel set back because having a clean scorecard is a huge accomplishment.
Will this be the last student loan you need? I don't think another would do as much damage as the first.



Message 14 of 21
Valued Member

Re: Debt-to-Credit Ratio on Student Loans

Thanks for the motivation! I try not to get obsessed with the score but you know how it is haha. This will be my only student loan (thank God). Unfortunately, the loan has not posted to experian yet so I'll probably take a hit there as well. I used to pay monthly for myfico but it's too expensive. Maybe I'll try that $1 trial.... Thanks for the info!






Message 15 of 21
Valued Member

Re: Debt-to-Credit Ratio on Student Loans

Ok so I did the creditchecktotal trial. EX 795 TU 796 EQ 785. But the reports aren't showing the loan. So, I just cancel the trial and then periodically I can do it again? That's genius Smiley Happy. Thanks again for everything!






Message 16 of 21
Valued Contributor

Re: Debt-to-Credit Ratio on Student Loans


@SB0328 wrote:
Ok so I did the creditchecktotal trial. EX 795 TU 796 EQ 785. But the reports aren't showing the loan. So, I just cancel the trial and then periodically I can do it again? That's genius Smiley Happy. Thanks again for everything!

Yup!  That's what I do.  It says 7day trial, but it's really a 10 day.  I cancel by day 7 in case they ever tighten that up.
Since the loan hasn't posted - you should see your AAoA before and after the posting (as well as your AoYA).  If you look around the scoring forum, you'll see people gathering data points to try to suss out the threshholds - it's not alway clear.

My young file (my oldest account is just a year old) shows a 10-12 point jump at just 3 months, so it's definitely profile dependent, but I'd put money on your scoring drops being due to the age effects.    Just hang in there and it'll all sort itself out for you in the end!

And have no fear, your scores are REALLY good, you'll be fine Smiley Happy




Garden goal: keep on keepin' on until 2020.
Message 17 of 21
Valued Member

Re: Debt-to-Credit Ratio on Student Loans

Alright I'll quit stressing lol! Last question: it says I have to call to cancel. Is that your experience?






Message 18 of 21
Valued Contributor

Re: Debt-to-Credit Ratio on Student Loans


@SB0328 wrote:
Alright I'll quit stressing lol! Last question: it says I have to call to cancel. Is that your experience?

Nope!

Go to the icon in the upper right corner (should be your initials)
Hover over it, and select "profile"
Left hand menu - click "My membership"
Scroll to the bottom and there should be something about changing your membership (sorry, I can't double check mine)
Select the Free Credit Basics and confirm.
You will automatically keep your trial membership until the 7-10 days runs out (I always cancel my first day so I don't forget).

When you are eligible for another $1 trial, it will offer it to you upon log in.

 




Garden goal: keep on keepin' on until 2020.
Message 19 of 21
Valued Member

Re: Debt-to-Credit Ratio on Student Loans

Awesome! Thank you so much for your help. Have an amazing day!






Message 20 of 21
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