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consolidate

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noobafterbk
Contributor

consolidate

Im sure this has been asked but i cannot find any answer. I have student loans which consists of 11 seperate accounts. I am finishing my six month grace period and looking to consolidate into one account/payment. Im current so at the moment they might be helping my score when i lose 10 accounts and replace them with a single account (balance will be same)will my score drop or increase?
Also any good ideas on which company to use to consolidate with?
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SCF
Valued Contributor

Re: consolidate

Consolidation will have a very limited impact on your credit.  You'll probably lose a few points from the new account and a drop to your AAoA, but those go away with time and are relatively small.

 

Are these federal or private student loans?  For Federal loans, everything you need to know is here: https://studentaid.ed.gov/repay-loans/consolidation  Basically, there is no financial benefit (your effective interest rate won't change), but there are some convenience factors to consider.

 

For private loans, you'll need to shop around to find favorable terms and a good interest rate - and you might be better off building your credit and establishing your income before refinancing to get the best offers.

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