When applying for mortgage financing, one of the most important aspects is your FICO score. Many mortgage lenders use this number to determine whether or not you get a home mortgage loan. And since the subprime lending crash, you need a higher FICO score.
This is why it is so disturbing that Sallie Mae could be destroying your FICO score. According to Consumerism Commentary, an error in reporting to Equifax is behind the problem:
Consumers have identified an error in Sallie Mae’s reporting. Accounts in good standing have been flagged and notated with the wording, “Arrangements made with credit grantor to make partial payments.”
While the other credit reporting agencies aren't seeing this yet, you never know. The drop in the FICO score for those affected is rather dramatic -- as much as 150 points. This underscores the importance of why you need to check your credit report regularly, and fix mistakes you find on your credit report.
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