Consolidating loans affect credit score Sluts on chat
Another perk about the direct loan consolidation is that it actually improves your credit score.
When you consolidate your student loans, a number of factors are modified in your finances.
This helps your credit score because the ratio of debt to income will go down.
This especially helpful if you are trying to secure a mortgage.
If you go through , you can also see to it that the interest from your loan goes to regular people instead of big banks. Federal Student Loan consolidation can only be done here.
Most of these changes will cause creditors to look more favorably upon you.
One factor that determines your credit score is the number of lines of credit that you have open. By consolidating your student loans, you replace your many student loans with one new loan.
There are many companies looking to take advantage of people struggling with their student loans.
It is critical that you do your research before you make any student loan consolidation decision.
The nice part about Federal Student Loan consolidation is that there is no credit check involved.