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

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.

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.