Does consolidating student loans affect credit
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.