Does consolidating loans hurt credit fob kalsu dating
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.
In other words, the value of a good credit score is the chance to save money.
It shouldn’t come as a surprise that a record of debt repaid is a good thing.By consolidating your student loans, many student loans are replaced with one new loan.The borrower still has the same amount of debt, but the number of lines of credit goes down, thus raising the credit score.The main explanation for a drop in credit score is due to age of credit.The longer a credit history, the better a credit score.
If the credit score is high enough to qualify for a low rate or favorable repayment plans, then the credit score has done its job.