How to pay off student loan

twoinanddone
Wed, 15 Jul 2020 06:56:49 +0000

[quote=“BelknapPoint, post:13, topic:2099021”]

Neither Equifax, Experian, nor TransUnion looks at checking or savings accounts when compiling a credit report or calculating a credit score. Maybe when you were “making loans,” a checking or savings account history or balance was one of the factors considered in determining credit worthiness, but again, checking and savings accounts have no impact on credit scores or credit reports. If you disagree, please tell us which credit score or credit report does consider checking and savings accounts.

Credit Reporting Agencies

There are nearly 40 credit reporting agencies in the U.S. But just three of these so-called credit bureaus dominate the market: TransUnion, Equifax and Experian.

…

TransUnion, Equifax and Experian [u[joined forces in 2006 to create a new type of credit score: the VantageScore. It was designed to compete with the Fair Isaac Corporation’s FICO Scores.
…

Experian, Equifax and TransUnion aren’t the only credit reporting agencies on the block. There are tens of other companies – big and small – that are active in the space. Most have carved out a niche for themselves, from tracking rent and utility payments to monitoring checking-account management and insurance consumption.

We used a credit scoring system that was based on the Fair Isaac system (and yes it was before 2006) but had also been tweaked for our special lending needs. Yes, we cared if our borrowers had savings and checking accounts, if they had a lot of revolving credit outstanding, and if they’d filed bankruptcy in the last 3 years. Those weren’t deal breakers, but we needed to consider the info. The scores issued by the Big 3 (although they were different at the time and used a different scoring system) didn’t work for us and didn’t help us make lending decisions. The system we used ranged from 0 to 550, and our sweet spot for our borrowers was about a 175. I had to deal with those credit reporting agencies all the time because they did pick up information on our loans and frankly, they were a PITA and couldn’t make corrections that lasted more than 2 billing cycles. Two months would pass and I’d have to contact them again.

It is like on CC - not everyone is going to Harvard so not every school collects the same info. Not every lender is Wells Fargo. We wanted different information. Fair Isaac scoring still exists.