Does consolidating student loans hurt your credit score

Do you have a workable spending plan that includes putting money aside for future financial goals?If you don’t know why or how you amassed ,000 in credit card debt, begin there.

does consolidating student loans hurt your credit score-82does consolidating student loans hurt your credit score-68

Bankrate recommends that you seek the advice of advisers who are fully aware of your individual circumstances before making any final decisions or implementing any financial strategy.Student loans are often treated as installment plans on your credit report.According to Equifax, student loans are often viewed as “good debt,” since it’s an investment in something that will build value (you hope).The principal reason is you will have a new inquiry and huge installment loan appear on your credit report, even though you also will have much lower debt-to-credit ratios on your credit cards.The potential underwriting risk that you present to a new lender is measured in conjunction with your credit score and will now have to incorporate that you have the chance to begin adding to your credit card balances again.

Leave a Reply