topic Re: Student Loan Consolidation / Auto Refi Score Effects in Understanding FICO® Scoring

Student Loan Consolidation / Auto Refi Score Effects

Anonymous — Fri, 27 Jul 2007 20:44:32 GMT

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??

Re: Student Loan Consolidation / Auto Refi Score Effects

fused — Sat, 28 Jul 2007 17:08:58 GMT

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

Re: Student Loan Consolidation / Auto Refi Score Effects

Anonymous — Fri, 27 Jul 2007 21:33:35 GMT

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.

Re: Student Loan Consolidation / Auto Refi Score Effects

fused — Fri, 27 Jul 2007 23:08:08 GMT

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?

Re: Student Loan Consolidation / Auto Refi Score Effects

Anonymous — Fri, 27 Jul 2007 23:30:47 GMT

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.

Re: Student Loan Consolidation / Auto Refi Score Effects

Anonymous — Sat, 28 Jul 2007 04:09:20 GMT

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.