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Posted in Student Loans
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Bambi1400

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My student loan company transfered my loan balances to another compay. My score went down..why?
I did not make the choice to transfer them, they did. My score went down over 20 points....I assume bc I had recent closed accounts (not my choice) How exactly does this effect my score and for How long. Is there anything I can do to get it back up sooner?

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Probably because the one account was closed and a new account added which would have reduced your "average age of accounts" and there may even have been a "Hard Inquiry" done on your credit as well. The other thing that didn't help would be that you went from having a loan that was paid down from the original loan amount to a new loan in where you owe the same as the original amount on the loan. As you get the loan paid down and some time goes by your scores will start to rebound. It is important to remember and this is a good example that not all lenders are good to work with. Just another piece of advice: keep an eye on your FICO scores in addition to any non-fico scores that you follow.

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