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consolidation or rehab

Established Member

consolidation or rehab

I know this question has been asked a million times, but I'm still having a hard time finding the answers I'm looking for. 

 

Which is more beneficial to short term credit score and which is beneficial to long term credit score?

 

Is any federal loan qualified for consolidation and rehab. I know a couple of my loans are qualified for rehab but would those also be qualified for consolidation instead? They are all federal loans.

 

 

Starting Score: EQ 511 (1/20/13)
Current Score: EQ 633
Goal Score: 680
2 REPLIES
Established Member

Re: consolidation or rehab

Anyone?
Starting Score: EQ 511 (1/20/13)
Current Score: EQ 633
Goal Score: 680
Highlighted
Valued Contributor

Re: consolidation or rehab

Rehab is the best for your credit score both in the short and long-term.

 

The only thing consolidation does for you is bring the loan out of default and open a new account.  All of the original negative remarks will remain, and you will probably not get them removed unless you get lucky with a goodwill request.

 

Rehab offers you the option to have some (or all, depending on the lender) of the negative information removed after 9 months.  It will also give you a backdated positive account, as opposed to a new consolidation loan.

 

A loan can only be rehab'd once, and generally, it can only be consolidated once as well.