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Does Direct Loans pull your credit when applying for consolidation?

Does Direct Loans pull your credit when applying for consolidation?

We are closing on a home next week and I am wanting to consolidate my federal student loans.  However, I do not want a hard inquiry pop up right before closing.  Does Direct Loans pull a hard when you consolidate, or should I just wait until after we close?

 

Thanks!

Message 1 of 5
4 REPLIES
New Contributor

Re: Does Direct Loans pull your credit when applying for consolidation?

I would like to know the answer to this as well!

Message 2 of 5
Valued Contributor

Re: Does Direct Loans pull your credit when applying for consolidation?

I don't think so, because the loan is not based on your credit-worthiness, just the status and type of your loans.

 

BUT, I would just wait to do anything until your mortgage closes.  It's not worth the risk just to move the process up a few days.

Message 3 of 5
Regular Contributor

Re: Does Direct Loans pull your credit when applying for consolidation?


SCF wrote:

I don't think so, because the loan is not based on your credit-worthiness, just the status and type of your loans.

 

BUT, I would just wait to do anything until your mortgage closes.  It's not worth the risk just to move the process up a few days.


They didn't for me. 

 

Not sure if they do as a general rule...


Starting Score: EXP 615 | TU 610 | EQ 635
Current Score: EXP 719 (lender pull 10/15) | TU 707 | EQ 700 (lender pull 10/25)
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Message 4 of 5
New Contributor

Re: Does Direct Loans pull your credit when applying for consolidation?

One thing that you may want to consider, and that I DO know, is that the consolidation loan WILL show up as a new line of credit.  It hit me when I did the special consolidation last year, and I am expecting it to hit me again when I complete the regular consolidation.  I'm not sure how long it takes to recover from that, or exactly how significant the hit will be.

Message 5 of 5