Does consolidating loans hurt credit dating carlton ware marks
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.
In other words, the value of a good credit score is the chance to save money.
This means that those lines of credit are marked as closed.
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.
Some borrowers may actually see their score drop by consolidating or refinancing.
Though federal direct consolidation and private student loan refinancing are very different processes, the impact to a borrower’s credit score is similar.