Effect of consolidating student loans on credit score

10-Nov-2017 22:18

So every time you make a payment on time, you’re contributing to a positive history that helps increase your credit score over time.

As long as you’re able to pay your bill each month, you can rest easy knowing that you’re building a solid credit history and score.

If you’ve already missed payments on a federal student loan, you can look into loan rehabilitation.

That program helps borrowers return to current repayment status and have the default axed from their credit report.

Not only does your student loan payment affect how much money you have leftover from your paycheck each month, it also takes a toll on your credit.

Private student loans may require payment right way.Having student loans establishes credit history, which is helpful for those who can’t access revolving credit, and for those with credit cards, a student loan improves the diversity of their credit profiles, since it’s an installment loan.Borrowers can look at student loans as an opportunity to strengthen payment history — the most important aspect of credit scores.While it certainly can be detrimental to your credit score in some ways, it can actually be helpful in others.The timeliness and consistency of your payment history on all debts account for 35% of your credit score — the most important factor contributing to that magical number.

Private student loans may require payment right way.

Having student loans establishes credit history, which is helpful for those who can’t access revolving credit, and for those with credit cards, a student loan improves the diversity of their credit profiles, since it’s an installment loan.

Borrowers can look at student loans as an opportunity to strengthen payment history — the most important aspect of credit scores.

While it certainly can be detrimental to your credit score in some ways, it can actually be helpful in others.

The timeliness and consistency of your payment history on all debts account for 35% of your credit score — the most important factor contributing to that magical number.

When you go to sell it, you’ll hopefully be able to pay off the remaining mortgage balance and maybe even have some equity leftover for yourself.