Does consolidating student loans hurt my credit score

That good credit score can help you achieve lower student interest rates when refinancing.And affordable student loans will help you keep making payments on time every month.That means you can be prequalified and find out what terms you’re eligible for without taking a hit on your credit.A soft pull doesn’t affect your credit because lenders don’t see your entire credit report at that stage.Remember, student loans are difficult to discharge in bankruptcy and default can have long-term effects on your credit score.It’s way too easy to get hung up on achieving the “perfect” credit score.Please do your homework and let us know if you have any questions or concerns.Magnify Money is an advertising-supported comparison service which receives compensation from some of the financial providers whose offers appear on our site.

If you maintain a positive payment history, have a long history with financial institutions, and keep credit card balances as low as possible (zero is best), then you’ll be able to achieve a good credit score.Shopping around for the best deal from many of the top student loan refinancing lenders begins with a “soft” credit check, which has no affect on your score.If you find an offer you like and move forward with a full application, a hard credit check is performed.If you send all of your paperwork in right away and respond quickly to any additional requests the lender has, you might get an answer in two to three weeks.But some lenders can take even longer than that, some take more than 30 days to complete refinancing.Reach out to them to see if they have a hardship program to help you out or any other flexibility in repayment.

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