Consoldating federal student loans cs8000hd updating bins pdf
Another credit score advantage of student loan refinancing is that many loans will show as paid in full.
It shouldn’t come as a surprise that a record of debt repaid is a good thing.
This especially helpful for those trying to secure a mortgage.
It would be nice if consolidation or refinancing caused a predictable movement in score. In some circumstances, a borrowers credit score can drop.
When consolidating student loans, a number of factors credit score variables are modified.
Most of these changes improve a borrower’s creditworthiness according to the credit bureaus.
The desire to improve and protect a credit score is responsible, but it shouldn’t be the first consideration.
The value in a high credit score comes from the ability to secure desirable terms in lending.
This helps borrowers who are looking for new lines of credit as it will improve their deb-to-income ratio.With that much money at stake, worrying about what Equifax or Trans Union thinks seems a bit silly.The one exception would be for borrowers who are looking to purchase a home in the near future.One factor that determines credit score is the number of lines of credit that are open.If consumers have too many, their score will go down.