counselor4kids Posted July 21, 2003 Report Share Posted July 21, 2003 I recently refinanced my student loan to lock in a low rate. The transaction has been complete-the loan has been paid off to the Dept. of Ed. and I will be paying a new lender. Any idea how this will affect my credit score since the loan will show as new? Is there any way for them to report my history on the old loan? Link to comment Share on other sites More sharing options...
DocDon Posted July 22, 2003 Report Share Posted July 22, 2003 The history on the old loan will remain. It should indicate "sold" or "transfered" to other lender. If any effect, it will only lower your score a little because it is a new account, but the $0 balance on the old one should offset it. Link to comment Share on other sites More sharing options...
DocDon Posted July 22, 2003 Report Share Posted July 22, 2003 The history on the old loan will remain. It should indicate "sold" or "transfered" to other lender. Which is why it's better to leave a little balance when transferring (say 1 or 2 payments). That way, the account will read "paid in full". If any effect, it will only lower your score a little because it is a new account, but the $0 balance on the old one should offset it. Link to comment Share on other sites More sharing options...
kbean Posted August 14, 2003 Report Share Posted August 14, 2003 good info... but what about if you refi/consoladate... before you go into repayment? will the deferred loans have had any effect on your score as of yet? Link to comment Share on other sites More sharing options...
md Posted August 22, 2003 Report Share Posted August 22, 2003 good info... but what about if you refi/consoladate... before you go into repayment? will the deferred loans have had any effect on your score as of yet?Good question. One of my loans I haven't paid on yet and am going to consolidate. I am heavily considering making a couple payments on it so it will become "Rated" since this loan dates back to 1996. That would help me out a lot since I may be getting rid of my two old CC accounts from 1995. You may be able to consolidate just before they go out of deferment and lock in that lower rate and then make a payment to the OC if you can leave some left. That is the only way I can think of swinging it. Link to comment Share on other sites More sharing options...
Guest Posted January 8, 2004 Report Share Posted January 8, 2004 when i consolidated my loans, my score dropped nearly 40 points when the consolidation loan was reported. Thankfully they only reported it to EQ. Link to comment Share on other sites More sharing options...
maax Posted January 8, 2004 Report Share Posted January 8, 2004 I consolidated too, but didn't know my score prior to the transaction. However, if I had to do it over again I'd follow the advice I've read on this board related to balance transfers. My positive tradelines with old loans are now reported as "transferred" instead of "paid in full." If I had transferred all but the last $100 on each, and then paid that $100 in a separate transaction the following month, I'd have four or five "paid in full" loans, instead of four or five "transferred to another lender." Bummer. Link to comment Share on other sites More sharing options...
CS123 Posted January 21, 2004 Report Share Posted January 21, 2004 Doc,when you say to leave 1-2 pymnts on the loan, do yu mean when you are consolidating the loan and say I got a 10k loan. should i consolidate for $9,800. for it to read paid in full Link to comment Share on other sites More sharing options...
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