Consolidation - previous loans still showing

[Brittany H]

Hi all - During my undergraduate career I took out about 15 different loans to pay for school. After graduation, I consolidated these into two groups, but when I look at my credit report it says one of the reasons my score is so low is because I have too many open accounts.

 

It turns out that after I consolidated the loans my report shows that each of the balances was reduced to $0, but the accounts were kept 'open'. Is this right? Here is an example of one of the account summaries that should be closed:

 

Student Loan Account

Sallie Mae Status as of [?] Dec, 2006

Date opened [?] Jan, 2004

Date of last activity [?] Dec, 2006

Date closed [?] Not Reported

Account number [?] XXXX

Loan type [?] Not Reported

Largest past balance [?] $1,500

Terms [?] Not Reported

Account Type [?] Installment

Account holder [?] Individual

Scheduled payment amount [?] $0

Account status [?] Account is Open

 

Descriptions [?]

Paid account / zero balance

Student loan

 

 

My loans are paid on time, as are my other credit obligations. But theere are so many of these $0 open accounts. IS this right? Can I do something about this? FiCO says they will stay there for seven years. So I am being punished (with a lower FiCO score) for seven years for consolidating my loans?

 

Thanks for the help

 

-Britt

[dianelin]

My husband is basically going through the same thing, only it shows the consolidations PLUS the original loans that were consolidated, which basically more than doubled his outstanding loans!

 

There were 6 total loans for the six semesters he attended school. Plus the two consolidation loans (I guess they broke them down into subsidized & unsubsidized). That totals 8 listings on his credit report.

 

You would think the two consolidations would have brought the other six to $0, but it didn't. Now, instead of owing a little over $10,000, he owes over $20,000! And since he's entered rehab, they're making him pay the $20,000 plus interest. It really stinks.

[Brittany H]

well luckily all my previoius (i.e. 'before consolidation') loans are showing with a $0 balance. Sounds like your husband needs to dispute the extra $10,000 in duplicated debt showing on his report.

 

I just have about 15 tradelines that have ALWAYS been current, no defualts or negatives, etc. The balance was changed to $0 after consolidation but the account status still shows open.

 

And before someone says that these tradelines won't negatively affect my credit score:

 

Total Number of

Accounts [?] 38 [little flag icon]

 

[little flag icon] = Marks an aspect of your credit that is hurting your FICO® score.

 

 

Copied and pasted directly from myfico.com.