Valued Contributor
Jazzzy
Posts: 2,672
Registered: ‎07-29-2009
Re: Consolidate loans to reduce number of installment accounts on credit report?

Consolidation did not hurt my FICO at all. I consolidated because I wanted to make only one payment per month. I have it come automatically out of my checking account. I had no desire to keep making all those separate payments. Also, these lenders have been known to make mistakes....I only wanted one lender to have to monitor.

 

As to interest rate, all of my loans were either subsidized or unsubdizided Stafford loans. If I remember correctly, they simply give a weighted average to the rate...so you start out with the same rate overall. Then, however, they gave me a discount for setting up the automatic payment. So...I did get a discount. I consolidated through Direct Loans.