Does consolidating student loans hurt your credit dating fender bassman ten
This is a mistake that could cost you a fortune in the long run.
Whether you’re buried with over 0,000 of student loan debt or in the home stretch of repayment, you’re likely thinking about your future.
And while you’ll hopefully say goodbye to student loan debt, you may need to qualify for a loan, credit card, or other financial product in the future.
Home mortgage, auto loans, insurance rates, and even employment interviews all depend on your credit score.
When you’re ready to get out of debt, sometimes it’s hard to know which path you should take.
For some people, debt consolidation will be the best option because it can allow you to group all your debt together, thereby making it easier to manage your debt – and in some cases lowering your monthly payment and interest rate at the same time (see our article on how debt consolidation works).
They can help you negotiate terms with your creditors and assist you with making sure payments continue to be made on time during any changes made to your payment schedule.But of course, before you can decide if it’s the right choice you have to answer some important questions.One of the most important is, “does debt consolidation hurt your credit score?Also included in your report is a history of the payments you’ve made on time, and those you have paid late (or not paid).The 3 major credit bureaus (Equifax, Experian, and Trans Union) compile this information and make it available, along with your credit score, to lenders who want to find out how creditworthy you are.