03-29-2014 12:54 PM
Lot of student loans, 450k, all in forebearance. Consolidated to one payment which will go into active repayment this month, but low ibr payment of only about $200.
Drop scores? Raise scores? No affect?
my understanding is consolidating federal debt does not generate a hard pull.
my understanding is my 21 SLs making up the 450k will now show as paid and this will help my score.
my understanding is the new consolidated loan will lower aaoa and add a new installment loan, which will hurt score.
03-30-2014 06:29 AM
Bump. Also im reading the more open installment loans you have the more it negatively impacts scores. My student loans are over 20 in number undergrad + med school, so 20 down to 1 with consolidation should help score aye?
04-17-2014 09:02 PM
You are correct in that there is no hard pull. I consolidated 12 separate loans worth $100K myself, not much change in my score but that was likely due to other negative factors. I will tell you that I took a bit of a ding on the AAOA but it's totally worth it since I pay overall less interest and have one single payment to deal with. I have an IBR and working towards the 10 year public service debt forgiveness program.
04-18-2014 08:24 AM
I am in the middle of the consolidation process right now for 150k. Glad to see I am not alone! I was wondering how it woudl effect my score to, I guess only time will tell....
04-18-2014 02:10 PM
I consolidated 11 SM loans into one back in 2007, so I can give a little insight.
I'm not sure whether there was a HP, as I didn't pay that close attention back then.
I know I had MULTIPLE 90-120 day lates on each of the eleven individual loans and they did NOT go away until they aged off late last year (about 2-3 months earlier than they should have).
You will take a small hit for AAOA as it starts a new tradeline for consolidated loan. Tthe old individual tradelines will stay on the report for I believe 10 years from the time you closed them.
IBR has been a GODSEND for me as well, although I will say that once you get into the program be VERY aware of when your renewal date is every year. This year was my first renewal and the only notification they sent me was two months before the cutoff date via their website correspondence.
Luckily I checked it FOUR days before the cutoff, and they actually hit me with a statement for a $3K payment, before renewing the IBR just three days before it was due.......
04-18-2014 05:32 PM
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.