Jump to content

Who's scores went up when they consolidated SL's?


simplysilky
 Share

Recommended Posts

Just wondering because right now I am in my grace period and am about to consolidate $13k worth of student loans. I need my credit scores to go up....like yesterday!

Why would they go up? You aren't adding any positive history, nor are you deleting negative history. By consolidating, you are simply closing several TLs with history and replacing it with a new TL with no history. (... and the old TLs will say "consolidation" in the notes.) You may gain or lose a couple points. I wouldn't expect anything else.

Personally, I'd believe NOT consolidating will help your scores much faster, as you'd have monthly positive history over several TLs instead of just one or two.

Link to comment
Share on other sites

Why would they go up? You aren't adding any positive history, nor are you deleting negative history. By consolidating, you are simply closing several TLs with history and replacing it with a new TL with no history. (... and the old TLs will say "consolidation" in the notes.) You may gain or lose a couple points. I wouldn't expect anything else.

Personally, I'd believe NOT consolidating will help your scores much faster, as you'd have monthly positive history over several TLs instead of just one or two.

Yes, I consolidate and i lost a few poiints because i did lose the years of positive history on the student loan. they were all closed and marked refinanced and the new tl posted. Unless those are new loans you will lose points. But you will be saving money.

Link to comment
Share on other sites

Yes, I consolidate and i lost a few poiints because i did lose the years of positive history on the student loan. they were all closed and maked refinanced and the new tl posted. Unless those are new loans you will lose points. But you will be saving money.

Yes, these are NEW LOANS--not defaulted. I'm still in my grace period by 3 weeks. So the history of the t/l's would make a difference?

Link to comment
Share on other sites

Yes, these are NEW LOANS--not defaulted. I'm still in my grace period by 3 weeks. So the history of the t/l's would make a difference?

Yes, FICO uses the age of your accounts to help determine your credit score. The older your accounts are the better it is for your score.

If the loans are very new you wont lose much. It is always best to consolidate those loans and save some money.

here is a link to the FICO info on what goes into your score.

http://www.myfico.com/CreditEducation/WhatsInYourScore.aspx

Link to comment
Share on other sites

Guest
This topic is now closed to further replies.
 Share

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.. For more information, please see our Privacy Policy and Terms of Use.