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Question By
jayrosecapeau

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why did my credit score drop so drastically when I opened a new student loan?
I just recently switched student loan companies and it seems to have dropped my equifax score by 57 points. My old student loan closed a couple weeks ago showing it being paid off in full, just this past week my new student loan company reported that they opened the account and it caused my score to drop drastically and I can not figure out why. The new account is obviously in good standing because it is brand new so no payments could have been missed yet. When I go over the credit factors they all are still good and my number of accounts has gone up which they say is also a good thing. I'm not seeing anywhere that it explains why the score would be effected negatively especially that severely.

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Closing loans and opening loans both have negative effects to your scores. However, the decrease you are talking about sounds pretty excessive, I would take a look at your FICO scores to see how they reacted to this.

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