Does consolidating student loans affect credit score Ipad xxx cam

Having multiple types of credit, such as a loan and credit cards, can improve your credit.Once your loan is paid off, you’re eliminating that type of credit.If you’re in a low-paying job with a high amount of student loan debt, this could hurt your credit.Student loans can also negatively affect your credit if you have a high balance that isn’t budging or, with interest, possibly even growing.This will lower your average account age and show a reduction in that account history.

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According to Equifax, this “ding” can lower your score by a “couple of points,” which remains on your credit report for two years.However, the types of credit you have only constitute 10% of your score, whereas the total amount you owe counts for 30%.So keeping that big student loan balance around, especially with a lower income ratio, is going to hurt you.According to Equifax, student loans are often viewed as “good debt,” since it’s an investment in something that will build value (you hope).But if you have a high debt-to-income ratio, this could be bad for your credit.

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