cancel
Showing results for 
Search instead for 
Did you mean: 

Student Loans Transferred - Multiple Closed Accounts

tag
Anonymous
Not applicable

Student Loans Transferred - Multiple Closed Accounts

I have a question about how closed installment accounts affect my credit report/score. 

 

I currently have 7 open student loan accounts on my credit report.  However, in the past couple of years almost all of my original student loan lenders have been bought out or transferred my loans to other servicers - some more than once - resulting in 13 closed student loan accounts showing on my report.  This is a total of 20 student loans on my report in the past 5 years!  How does this affect my score and would it be worth my while to write to lenders and see if they'll removed the closed accounts from my report?

 

Thanks!

Message 1 of 9
8 REPLIES 8
llecs
Moderator Emeritus

Re: Student Loans Transferred - Multiple Closed Accounts

Welcome to the forums!

 

Since this is about FICO scoring, it was moved over here.

 

FICO looks at several factors within these loans like payment history, their age, balances, worst delinquency, and so on. So as long as these accounts aren't a negative (e.g. lates showing, default status, etc.), then leave them alone. FICO looks at your overall length of history including your average age of accounts (AAoA). As these accounts age, your AAoA will increase and so will your score. They'll usually fall off 10 years from the date of closure, so once they start dropping, you can potentially see score decreases because the AAoA would drop as well. And if these closed accounts are among your oldest, then removing them would hurt more. But as long as they report, you are setting yourself up for a positive length of history and a better score.

Message 2 of 9
Booner72
Senior Contributor

Re: Student Loans Transferred - Multiple Closed Accounts

Plus I seriously doubt they would be willing to remove them anyway.  I have a ton (10-13) of different student loan accounts from Sallie Mae showing only on EX - the rest dropped off.  EX is by far my highest score as you can see from my sig.  I believe it is due to the AAoA of these student loans.  I dread the day they fall off - I believe they are going to drop next year.

 

Be grateful!  This is a good thing.

STARTING: 11/24/10 EQ-584 EXP-648 TU04-595
CLOSED FIRST HOME 8/19/11 EQ-630 EXP-691 TU04-653
CURRENT: EQ-701 EXP-??? TU08-720
Message 3 of 9
Booner72
Senior Contributor

Re: Student Loans Transferred - Multiple Closed Accounts

I just counted - it's 15 accounts.  Date closed is 11/2001.  Why they still report is beyond me.

STARTING: 11/24/10 EQ-584 EXP-648 TU04-595
CLOSED FIRST HOME 8/19/11 EQ-630 EXP-691 TU04-653
CURRENT: EQ-701 EXP-??? TU08-720
Message 4 of 9
llecs
Moderator Emeritus

Re: Student Loans Transferred - Multiple Closed Accounts


@Booner72 wrote:

I just counted - it's 15 accounts.  Date closed is 11/2001.  Why they still report is beyond me.



If you don't want them, I'll take them. I bet I can get an increase in AAoA by 2-3 years and maybe a few point increase.

Message 5 of 9
Booner72
Senior Contributor

Re: Student Loans Transferred - Multiple Closed Accounts

Oh I want em allright!  Just curious why they are still there. 

STARTING: 11/24/10 EQ-584 EXP-648 TU04-595
CLOSED FIRST HOME 8/19/11 EQ-630 EXP-691 TU04-653
CURRENT: EQ-701 EXP-??? TU08-720
Message 6 of 9
checkmyscore
New Member

Re: Student Loans Transferred - Multiple Closed Accounts

When you look at a FICO report, FICO divides the factors affecting your score into four categories: Payment history, Amount of debt, Length of credit history and Amount of new credit. Each can be described by five broad ratings from bad to great.

 

In my case, my Amount of debt was very good six months ago. Now that my ten student loans were transferred by the dept of ed to another office, I have twenty loans listed. FICO does not like seeing this many accounts, and lowered my rating to only good. In fact, FICO says that the best scores come from those with an average of only six credit accounts.

 

Basically the dept of ed has Mod Cut. This is like listing every credit card purchase separately! Federal student loans use to be combined and listed as one account on credit reports.

 

If anyone has been successful at rectifying this detrimental reporting practice, please let us know what you did.

 

 

 

 

 

 

 

 

Message 7 of 9
tmbr10
Regular Contributor

Re: Student Loans Transferred - Multiple Closed Accounts


@checkmyscore wrote:

When you look at a FICO report, FICO divides the factors affecting your score into four categories: Payment history, Amount of debt, Length of credit history and Amount of new credit. Each can be described by five broad ratings from bad to great.

 

In my case, my Amount of debt was very good six months ago. Now that my ten student loans were transferred by the dept of ed to another office, I have twenty loans listed. FICO does not like seeing this many accounts, and lowered my rating to only good. In fact, FICO says that the best scores come from those with an average of only six credit accounts.

 

Basically the dept of ed has Mod Cut. This is like listing every credit card purchase separately! Federal student loans use to be combined and listed as one account on credit reports.

 

If anyone has been successful at rectifying this detrimental reporting practice, please let us know what you did.

 

 

 

 

 

 

 

 


I'm sorry to hear that this has happened. I have not experienced these same circumstances however. Installment loans (student loans, auto loans, etc) are viewed and counted differently then revolving credit (credit cards). I probably had as many or more student loans then everyone posting in this thread so far. Then I consolidated to subsidized and unsubsidized. Basically going from ~12 open accounts to two. Those 10 or so accounts remain on my CR as closed and in good standing. Basically helping my AAof A.

 

Based on the info that you provided, Maybe you should consider consolidating.

 

Message 8 of 9
Anonymous
Not applicable

Re: Student Loans Transferred - Multiple Closed Accounts

Hey all! I hope you can answer this one.

 

I have several student loans on my account. Dating back to 2008. 

 

Most of them have serious delinquincies. (Very long story)...

 

They have since been sold from Sallie Mae/US Dept Ed to "Navient". Since then, I have begun making payments, and account is no longer defaulted.

 

Navient purchased the accounts in 2014. However, both Sallie Mae/US Dept Ed and Navient are reporting late payments from 2008 - 2014. 

 

Can they both report on the same accounts, for the same time frames? I have disputed with Experian, to no avail. How is it that 15+ late payments can be recorded as 30+?

 

Please help!

Message 9 of 9
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.