Sallie Mae Student loans reporting incorrectly on credit- what can a homeowner do to fix?
Over the weekend I met with a past client in southern CA, now divorcing her husband and buying her husband out to keep the house through a cash our refinance.My client has 5 seperate student loan accounts with Sallie Mae and each of them is reporting a higher balance owed than her credit limit which in turn is adversely affecting her credit fico score in the 680 range vs the 720+ rangeIn an effort to get my client's credit score higher next month when it is time to refinance by court order, what options does my cleint have to force Sallie Mae to report her balances correctly with all 3 credit bureaus, so it does not negatively impact her credit moving forward?Note: My client called Sallie Mae Saturday and the customer service representative told her she could not consilidate into one account and they would not update her credit balances with the credit bureaus.... Anyone have ideas how best to resolve? by phomer@m1m.com from Orange, California. Mar 19th 2018
William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,728 contributions
I can definitely help, but I"m pretty sure that having a higher balance on the student loans' on the credit report than what your actual balances are, is affecting your score negatively by 40 Points.. Credit cards will have a negative affect on your credit score if the balances are high.. that's because your credit scores are based on the "Utilization" of the credit cards, and once you go over 28% to 30% of what you have available,, your score will start to go lower.. But student loans do not affect your score the same way credit cards do.. Student loans are an installment loan.. so really, it's the payment history that will affect the score. None the less, I have a tool called a "What If" Simulator.. This is where I can pull up your clients credit report, and make changes to the student loan balances to see what (if any) impact it would have to the credit scores. If there is a difference, then we can get copies of her 5 statements and forward them to the credit agency and have the balances corrected and then their credit report re-scored.. Just be aware that this can be expensive.. you have 5 accounts on 3 bureaus.. so that's 15 charges for re-scoring at about $40 each.. Also, certain loan products have a cap on loan level price adjustments (LLPA's).. so depending on the equity she has, it's possible there wont be a marginal difference in the rate going from 680 to 720. Again, I can definitely help, so let me know.. I'm a preferred Lender with California and Arizona being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com NMLS# 226347 / RPM Mortgage NMLS 1541014 / AZMB0121893
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