Student loan balance decrease

[Anonymous]

Hi all!  

I usually post in the rebuilding forum, but it seems this may be the appropriate place for my question.  My student loans are currently in deferment (in school), but I am making regular monthly payments anyway.  I just got a myfico alert that my credit limit has decreased- but it's just that the balance of my student loan has decreased.  I haven't seen any score reduction, but is this having a negative impact on my overall credit file by stating it as a credit limit decrease?

Thanks for your help  

[Anonymous]

How odd.  Can you give the folks here the exact wording used in the alert?

And are you certain that none of your credit limits on your cards have changed?  A balance changing is not the same thing as a credit limit changing.  And installment accounts don't have credit limits anyway.

I am not an expert in the myFICO Ultimate product, and with what its alerts mean.  Regardless the alerts in themselves do not necessarily have anything to do with your scores.

The FICO models do not care what your credit limits are (in and of themselves) though they do care about utilization.

[Anonymous]

Nope- no actual limit decrease on any cards. This is what the myfico alert says:

COMPANY NAME
US DEPT OF ED/GLELSI
CREDIT DECREASE
$27,690.00-$27,539.00

And I must apologize- myfico calls it a "credit decrease". It was creditchecktotal that calls it a "credit limit decrease." So confusing...

[Anonymous]

The same happened to me. 

I had an account with Great Lakes and did a student loan consolidation which made FedLoan my new servicer. When the consolidation was complete, Great Lakes closed the account and noted a $0 balance. I'm still enrolled in school and recently took additional student loans.

When the funds disbursed I received an alert through my Experian and myFICO accounts saying "Credit Limit Increase". I thought it was a credit card, but when I logged into myFICO account, the alert was attached to my student loans. Instead of creating a new tradeline, Great Lakes reopened the closed account and my balance went from $0 to $3800. 

[Anonymous]

This is also happening to me. The reduction through regular payments of my Navient student loan balance is being reported as a credit limit DECREASE and my score is going DOWN because of it. The account is on time etc etc. This is absurd that it would be reported this way and my score lowered for doing nothing more than paying down an installment balance on time. Consumers deserve better. Now I have to go to Navient and start this circle of nonsense where tehy tell me it is the others fault and nothing gets resolved...