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Multiple Students Loans Per Quarter Killing AAoA

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Multiple Students Loans Per Quarter Killing AAoA

Hi All, this is my first post here so forgive me if it's in the wrong place. 

 

I've been trying to be more diligent about keeping an eye on my credit reports for the last year or so, and I've seen a modest increase in my score. However, I decided, at 30, to go back to college in the spring last year, and my student loans are killing me. Not the amounts - the fact that there are now TEN of them! 

 

Previously, I had ONE credit card (currently at 37 months), ONE auto loan (31 months old), and ONE personal loan (32 months old). It wasn't a great AAoA, but I was getting divorced and starting over and was doing well with them. I still have 100% on time payment history. However, now I have a boatload of student loan accounts added, and a lot of them are for very small amounts (4/10 are for less than $600 each).

 

Its got my AAoA down to 11 months. This is not something I want to be dealing with if I'm hoping to maybe purchase a house in the next 2-3 years, especially since this won't be the last of them - I'm still in school for at least another year, and likely further because I'm planning to move directly into a grad program. Is there any way to keep going to school (on financial aid) without this holding back my score improvement?

 

Also - is this even something I really need to stress about? I'm paying my bills on time, I'm bringing down my utilization... I'm just worried about shooting myself in the foot with all these accounts showing up. :-/

 

Thanks!

 

Starting Scores (CK) - 5 May 2018

TU - 565

EQ - 565
EQ FICO 9 (NFCU) - 541

 

Current Scores (CK) - 10 Mar 2019

TU - 626

EQ - 620

EQ FICO 9 (NFCU) - 612

Message 1 of 3
2 REPLIES 2
Frequent Contributor

Re: Multiple Students Loans Per Quarter Killing AAoA

Don't stress about it at all. As they will age together. In 2 yes when you are shopping for a mortgage you'll have 10+ accounts all older than 3 yrs. If you consolidate them into one your aaoa takes another hit.
Message 2 of 3
Community Leader
Valued Contributor

Re: Multiple Students Loans Per Quarter Killing AAoA

I don't think there is any problems with the loans, even if you continue to get then for education. Even at 30 these will probably help you repair your score (on-time payments, etc.).
I noticed that not that long ago your scores were in the 500's. Now that you are spending time repairing your credit they are in the low 600's. This should not be due to the loans. I'm wondering if there is something more serious on your report, perhaps something that will not age off in a couple years? If so, how can we help you approach that? Goodwill letters, PFD... it all depends on what the derogatory is. This will probably be the thing holding you back most during the time you want to buy a house.



Message 3 of 3
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