Reply
New Contributor
r92503lind
Posts: 73
Registered: ‎07-19-2007

Student Loan Consolidation / Auto Refi Score Effects

Generally speaking does paying off loans and opening up new installment accounts increase your score by showing a payoff?
 
I know account history is a variable but not including this factor I am wondering if by taking the hit for the inquiry to get the new loans if it would pay off after two to three months.
 
Any thoughts??
Moderator Emeritus
fused
Posts: 16,187
Registered: ‎03-12-2007

Re: Student Loan Consolidation / Auto Refi Score Effects

[ Edited ]


r92503lind wrote:
Generally speaking does paying off loans and opening up new installment accounts increase your score by showing a payoff?
 
I know account history is a variable but not including this factor I am wondering if by taking the hit for the inquiry to get the new loans if it would pay off after two to three months.
 
Any thoughts??


I wouldn't expect much in the way of increases or decreases to your FICO scores. Perhaps in the long run, having paid installment TLs on your CRs would help your credit mix but no one really knows how many points you might gain from this.
 
I am not a big believer in applying for credit/loans just for the TL. If you don't need the credit card or loan, why apply. I am certain someone else will chime in here and disagree with me.


Message Edited by fused111 on 07-28-2007 07:08 AM
New Contributor
r92503lind
Posts: 73
Registered: ‎07-19-2007

Re: Student Loan Consolidation / Auto Refi Score Effects

I am wanting to refi my car loan as I have a 11.5% interest rate and on the student loans I had a call from a lender saying it would save me money by consolidating..not sure how but haven't researched either.
 
I have waited to do anything as I was looking to buy a house but then found my score was to low to qualify for the loan I wanted so now I am wondering if it matters to wait at this point.
 
 
Moderator Emeritus
fused
Posts: 16,187
Registered: ‎03-12-2007

Re: Student Loan Consolidation / Auto Refi Score Effects



r92503lind wrote:
I am wanting to refi my car loan as I have a 11.5% interest rate and on the student loans I had a call from a lender saying it would save me money by consolidating..not sure how but haven't researched either.
 
I have waited to do anything as I was looking to buy a house but then found my score was to low to qualify for the loan I wanted so now I am wondering if it matters to wait at this point.
 
 


What are your 3 FICO scores?
New Contributor
r92503lind
Posts: 73
Registered: ‎07-19-2007

Re: Student Loan Consolidation / Auto Refi Score Effects

EQ 653 Currently
TU 672 - 1 month ago
EX 650 - 1 month ago
 
I have a short history so I am going to get a AU to get added history.
Moderator Emeritus
Timothy
Posts: 9,252
Registered: ‎03-19-2007

Re: Student Loan Consolidation / Auto Refi Score Effects

I took a 15 point hit when my consolidated student loans showed up.
 
old one were updated to zero and marked paid the same time.
 

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+