I owe total of 25k from salliemae, and I'm about to start repaying my student loan in November. I got money from them on four different occasions - 1 loan/semester. If I consolidate all my loans, how much will it affect my credit score?
2007-07-03 07:10:45 · 5 answers · asked by maeannehortel 1 in Education & Reference ➔ Financial Aid
Consolidating your student loans will make little to no impact on your credit score in itself, but if consolidation helps you to make your payments and to not be late, then over time it will definitely help you RAISE your score. Whatever you do, make sure you keep up on your payments and don't be late. Then your credit will go up. Good luck!
2007-07-03 07:19:17 · answer #1 · answered by Mr. Taco 7 · 1⤊ 0⤋
Here's how Sallie Mae explains it:
"Does consolidating my student loans affect my credit score?
Federal student loan consolidation is a valuable debt-management tool that can help many education loan borrowers.
Student loan consolidation allows you to bundle all of your eligible federal student loans into a single new loan with one lower monthly payment based on a fixed interest rate.
This, in turn, could reduce your debt-to-income ratio. Lenders use this number to calculate credit scores."
2007-07-03 09:01:16 · answer #2 · answered by naniwako 6 · 0⤊ 0⤋
It wont affect your credit, but you need to really look at it before you consolidate. I graduated in 2003 and they have been trying to consolidate me since then. They are still trying, but consolidating will lower the monthly payment and lock me in to repayment for 20 years. I only have 8 years left and I owe 20K. Its not worth it in my opinion. All my loans are with the same finance company to begin with because I didn't change schools.
2007-07-03 07:15:19 · answer #3 · answered by dwolf317 2 · 0⤊ 0⤋
Don't know how it will affect your credit score, but consolidation is the right way to go. The less loans/open accounts you have the better (unless you only have one) for your credit score, typically.
I am soooo glad I consolidated my loans! Only one payment, which also means only one APR.
2007-07-03 07:15:00 · answer #4 · answered by d maku 2 · 1⤊ 0⤋
oh yes it will.... i no someone who didnt pay it off and it totally came back and bit her in the butt if you know what i mean.
2007-07-03 07:19:09 · answer #5 · answered by ♥Chelsey♥ 2 · 0⤊ 0⤋