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Will consolidating raise my credit score?

Established Contributor

Re: Will consolidating raise my credit score?

When my loans reported, I lost 10-14 points on my FICO 08 scores. I also lost points when the loans were marked as "paid and closed". 


Do not rely on what the simulator tells you. I can say that if the school loans are your only installment loan, you will take a hit. The FICO system likes a "credit mix", which includes having an installment loan open. 


To your questions on the other threads, the default notation was only noted through the Dept of Education. My credit reports showed the default amounts as collections. The collections were not deleted, they were only marked as "Paid and Closed". 

FICO8 Scores - 639TU / 650EQ / 649EX

New Homeowner - Dec 2017!
Message 11 of 12
Established Member

Re: Will consolidating raise my credit score?

Bumping this up to see what affect this had on your mortgage scores??
FICO 8 (March 2018) EX 647 TR 646 EQ 648
Rebuilding Starting Scores 6/16 EX 525 TR 530 EQ 520
In my wallet: Nordstrom ($2000), VS ($500), Kohls ($1000), Amazon ($800), USAA Visa Secured ($400)
Message 12 of 12