How does student loan consolidation affect your credit rating?
Asked by annabanana4883I'm almost positive I am going to consolidate my student loans from college because the repayment starts soon, and it seems like my best option. I've heard that it's also supposed to raise your credit score immediately. Is this true? How much of an impact does it really make? Thanks!
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Answered by Student Loans
Hi There, You are absolutely right... Your credit can be greatly increased immediately by consolidating... The reason is as follows.. Picture your situation if you dont consolidate.. You have say 10 loans, all with a different monthly payment ans interest rate all of which obligate you to a minimum payment each month.. So, the way the credit bureau's see it, you have alo tof obligations each month to pay for, which gives you a high DTI or debt to income ratio... Now, once you consolidate, it does manyu thngs... First and foremost, it comnines the multip-le loans into one large loan... The one large loan will have a SIGNIFICANTLY LOWER monthly payment which is huge in determining your credit score... So, the answer is YES it woul have an immediate impact on your score.. It could raise it as much as 100 points depending on your credit situation... The next question you should be asking is where to go to get the best rate for consolidation.. The thing that most people dont realize is that the Department of Education regulates and determines EVERYTHING about the consolidation process.. Every lender has the exact program to work with ther eis no difference in the type of qualifications from one lender to the next because we are all administered by the departmen tof education.. The ONLY difference BETWEEN LENDERS is the department of education chooses ALL RATE DISCOUNTS offered to students... Currently the government only offers 3 rate discounts.. Most lenders (sallie mae, nelnet,) choose to only give 1 or 2 of the rate discounts (because they lose $$ by giving) My company is a little different.. To set ourselves aside from the rest, we offer ALL 3 RATE DISCOUNTS TO CLIENTS.. It actually adds up to 1.85% OFF YOUR RATE FOR CONSOLIDATING... Other lenders will only offer yo to 1-1.25% off... I am a licensed student loan advisor with Student Aid Lending, we are a nationwide title IV lender administered by the Department of Education... I would be happy to assist you with the consolidation process.. Take a look at my yahoo 360 profile.. There is alot of helpful information there for anyone to view.. You can also find the direct link to my website.. 360.yahoo.com/my_profile-hluduhmi... It is actually a VERY SIMPLE process, it can be completed in 10 minutes over the phone and internet... Feel free to call or email me at any time.. Im available at all tiem to answer any questions or concerns you may have.. I hope this helps! Jason Fry Student Aid Lending 1-800-964-0642 ext 114 jasonf@StudentAidLending.com
Hi There, You are absolutely right... Your credit can be greatly increased immediately by consolidating... The reason is as follows.. Picture your situation if you dont consolidate.. You have say 10 loans, all with a different monthly payment ans interest rate all of which obligate you to a minimum payment each month.. So, the way the credit bureau's see it, you have alo tof obligations each month to pay for, which gives you a high DTI or debt to income ratio... Now, once you consolidate, it does manyu thngs... First and foremost, it comnines the multip-le loans into one large loan... The one large loan will have a SIGNIFICANTLY LOWER monthly payment which is huge in determining your credit score... So, the answer is YES it woul have an immediate impact on your score.. It could raise it as much as 100 points depending on your credit situation... The next question you should be asking is where to go to get the best rate for consolidation.. The thing that most people dont realize is that the Department of Education regulates and determines EVERYTHING about the consolidation process.. Every lender has the exact program to work with ther eis no difference in the type of qualifications from one lender to the next because we are all administered by the departmen tof education.. The ONLY difference BETWEEN LENDERS is the department of education chooses ALL RATE DISCOUNTS offered to students... Currently the government only offers 3 rate discounts.. Most lenders (sallie mae, nelnet,) choose to only give 1 or 2 of the rate discounts (because they lose $$ by giving) My company is a little different.. To set ourselves aside from the rest, we offer ALL 3 RATE DISCOUNTS TO CLIENTS.. It actually adds up to 1.85% OFF YOUR RATE FOR CONSOLIDATING... Other lenders will only offer yo to 1-1.25% off... I am a licensed student loan advisor with Student Aid Lending, we are a nationwide title IV lender administered by the Department of Education... I would be happy to assist you with the consolidation process.. Take a look at my yahoo 360 profile.. There is alot of helpful information there for anyone to view.. You can also find the direct link to my website.. 360.yahoo.com/my_profile-hluduhmi... It is actually a VERY SIMPLE process, it can be completed in 10 minutes over the phone and internet... Feel free to call or email me at any time.. Im available at all tiem to answer any questions or concerns you may have.. I hope this helps! Jason Fry Student Aid Lending 1-800-964-0642 ext 114 jasonf@StudentAidLending.com
