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Consonlidation

Regular Contributor

Consonlidation

I am in the process of signing my promissary note and just wanted to know if consolidation is the only way of keeping my interest rates from rising. I have a total of 24000 in loans broken down into 13 diff loans (some with the same company) and the interest rates are around 6% on all of them. My consolidation rate is like 6.25 or close to what I have now but I do not want my interest rates to go up on the 1st. I am just not sure if I am doing the right thing. I am with college loans direct and would like to know if there are any recommends out there. Have a great weekend!!
Message 1 of 7
6 REPLIES
Regular Contributor

Re: Consonlidation

BUMP
Message 2 of 7
New Member

Re: Consonlidation

Well I just registered b/c I have the exact same question. I have $10k left in my only student loan. (Direct Loan as well) I wanted to change it to a fixed rate before July 1st when the rates go up 1.08% but they kept saying that it would be a "loan consolidation" even though it's just one so I really don't feel like it's a consolidation. If that's going to happen, I might as well just transfer it & open up one of the many 0% cards I get. Here's a few details on my situation - any advice would be great. ------------------------------------------------------------------------------------------------------------------------------------------------------1) We are probably going to get a house/condo in the next 6 months. We live in NY. My hubby's score is in the 800's - I'm 728. --------------------------------------------------------------------------------------------------------------------------------------------------------2) I have 3 credit cards I use, 1 Mastercard Chase (my oldest from 1999) My Citi Elite Primer Pass (from '05) & My B. of A. Amex rewards (got it when they were still MBNA in '05) Sometimes they offer really low rates or even 0% on balance transfers. --------------------------------------------------------------------------------------------------------------------------------------------------------3) Should I consolidate for a lower rate, just transfer or open up a new card? I'm thinking I should just take the 1.08% increase for now & transfer to a 0% once we become owners & are no longer renting. Will consolidating/transfering look bad on my credit report? Any idea how many points I may loose? Will it look worse when it's listed as debt on a credit card vs the student loan now shows up as "educational?" Message Edited by choo-choo on 06-30-2007 09:09 AM Message Edited by choo-choo on 06-30-2007 09:10 AM Message Edited by choo-choo on 06-30-2007 09:11 AM

Message Edited by choo-choo on 06-30-2007 09:11 AM
Message 3 of 7
New Member

Re: Consonlidation



Message Edited by choo-choo on 06-30-2007 09:08 AM
Message 4 of 7
Regular Contributor

Re: Consonlidation

Choo-choo, I agree is it a help or a hurt? I don't even know if I should take the increase or the consolidation. What is the con to consolidating? Is it a win - win situation? I am a little confused right now as to what to do about these loans before 7/1.
Message 5 of 7
Moderator Emeritus

Re: Consonlidation

I consilidated in early June.
My INT was going from 7.14 to 7.22
I have it fixed at 7.25 now. I should have done it last year.
 
 
Message 6 of 7
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New Member

Re: Consonlidation

Well, I still don't know if I'm doing the right thing but I didn't consolidate. (I mean get my rate "fixed" - doesn't feel like a consolidation to me....) I hear that can hurt your credit a bit when you consolidate. We're really co-op shopping in New York City right now. It's always been a dream of ours & I don't want to drop any points. If I wasn't apartment shopping - I'd definately have done it - a few points in the long run vs saving money won't really matter. Good news - I had an orange 30 late mark coming up on an old Discover card from April '04. My memory's foggy but I don't ever remember being that late (maybe 3-6 days late but I've always called up & apologized & sent the $ right away......). I called up Discover & they can't find any record of me being that late either so their contacting the bureau's that it's an innacuracy. Huzzah! Hopefully my score will go up now since my old Discover card history should be all green now.
Message 7 of 7