Consolidating student loans credit score
So we know that your student loans themselves does impact your credit, but what about the student loan payments?Probably the most impactful aspect of student loans on your credit is your monthly payments.For Example, Home mortgage lenders and banks evaluate your debt-to-income ratio.
For example: Philip currently has a credit score of 670.
Your credit score and your credit report are not always regarded or evaluated the same way.
For example, you may have a 700 credit score, but your credit report may document a number of reported outstanding debts, unpaid balances and a not to impressive payment history.
Hi Jayben, Debt consolidation is good idea, if you wish to lower to interest rate and get the extra fees and charges waived off.
However, I don't think you can consolidate the loans if your student loan is federally granted. Yes, debt consolidation hurts your credit score, since it indicates that you are unable to pay off your bill normally.