Does consolidating student loans affect credit

A bigger concern than the hard credit inquiry is how the debt consolidation might affect your credit utilization.The phrase “credit utilization” simply means the percentage of your available credit that you are currently using.And for further reading, check out our article, “Is Debt Consolidation a Good Idea?When you get married, what was separate tends to become one.It depends on your particular situation and your ability to pay off debt.Here are the questions you must answer in order to figure out if debt consolidation will hurt or help your credit in the long run: There are three main ways of doing debt consolidation: Each of these three methods requires a hard inquiry on your credit, which is the same as when you apply for a new credit card, submit a rental application, or get an auto loan.

If you’re not familiar with the process, here’s a very brief explanation: Your credit report contains information about all the credit accounts you’ve ever had, including mortgages, auto loans, credit cards, student loans, etc.But of course, before you can decide if it’s the right choice you have to answer some important questions.One of the most important is, “does debt consolidation hurt your credit score?Of course the problem is that there is an inherent temptation in leaving those cards open. Check your rate using Ready For Zero's free debt consolidation tool.

People have saved thousands by consolidating higher-interest debts using a single, personal loan, this will not negatively impact your credit. Can you predict whether you’ll be tempted to spend more money if you suddenly have more credit available?

The hard inquiry will lower your credit score by a few points and stays on your credit report for two years.