account balances ?

granny031350 · ‎07-25-2008

Yesterday, the Dept of Education decided to change all of my 4 student loan accounts from "payment deferred" to "derogatory -- included in wage earner plan" which of course they were included in my chapter 13, filed in August of 2005. This also lowered my scores.

all my hard work tanked in 1 swoop!

My question:

Now that they are "derogatory" on my credit report they are now figuring into how many accounts I have as closed accounts. (closed accounts jumped by 4 across the board )

This hurts my utilization right? or because of the IIB status, are they not counted by Fico, even though until discharge a balance will show

Anonymous · ‎07-25-2008

granny031350 wrote:

Yesterday, the Dept of Education decided to change all of my 4 student loan accounts from "payment deferred" to "derogatory -- included in wage earner plan" which of course they were included in my chapter 13, filed in August of 2005. This also lowered my scores. all my hard work tanked in 1 swoop!

My question:

Now that they are "derogatory" on my credit report they are now figuring into how many accounts I have as closed accounts. (closed accounts jumped by 4 across the board )

This hurts my utilization right? or because of the IIB status, are they not counted by Fico, even though until discharge a balance will show

This does not hurt your utilization. Revolving utilization is the factor that has a big effect on your score. Student loans are not part of revolving utilization because they are installment accounts.

Yes, they are counted by FICO. If they have a derog description, FICO will score them as derogs.

granny031350 · ‎07-25-2008

thank you for answering. So these student loans are not figured into the utilization that is so crucial for getting up my score? My fear was that because they are now considered "closed" accounts and unpaid that it would put me at like 2500 percent utilization.

Thanks again