What Does “Account Closed Due To Transfer” Mean & Does It Affect Your Credit Record?

"Closed" signage behind a glass wall.

Flickr user Peter Kelly

When you consolidate your student loans, it gets transferred into a completely new loan with a new account and a new lender. When this happens, your old loan account becomes redundant but it still stays on record as part of your credit history.

Federal Consolidation Loan & Credit Scores

If you check your credit report after having consolidated your loans, you will see the details of all your present and past financial accounts and transactions. Against your earlier student loan, which has now been consolidated, you will see a notification that says, ‘Account closed due to transfer’.

This is not uncommon and a notification stating ‘Account closed due to transfer’ is not necessarily a bad thing. By itself, it does not indicate a negative mark on your credit history and it will not have any negative impact on your ability to apply for any other loans.

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However, if you have delinquent debt, your credit record will have a notification that says ‘Account written off’ or ‘Account charged off’. Either of these two notifications could have a negative impact on your credit record and your ability to borrow money in the future.

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Lender Rates (APR) Eligibility
Earnest company logo.
Variable APR: 1.74% - 7.99%*
Fixed APR: 2.99% - 7.99%*
Undergraduate and Graduate
Lendkey company logo.
Variable APR: 2.05% - 5.25%*
Fixed APR: 2.69% - 7.93%*
Undergraduate, Graduate, Parent PLUS
Credible company logo.
Variable APR: 1.86% - 8.38%*
Fixed APR: 2.35% - 8.73%*
Undergraduate and Graduate
Laurel road company logo.
Variable APR: 1.89% - 6.20%*
Fixed APR: 3.49% - 6.30%*
Undergraduate and Graduate
Commonbond company logo.
Variable APR: 4.60% - 8.25%*
Fixed APR: 4.49% - 7.74%*
Undergraduate, Graduate, Parent PLUS
Fixed APR: 3.94% - 8.48%*
Undergraduate, Graduate, Parent PLUS
VISIT ISL Education Lending
Variable APR: 3.49% - 7.99%*
Fixed APR: 3.49% - 7.99%*
Undergraduate and Graduate
VISIT College Ave
Variable APR: 1.86% - 6.01%*
Fixed APR: 3.39% - 5.99%*
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*APR includes a 0.25% interest rate reduction for enrollment in automatic payments.

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