Consoldating federal student loans

Today we will discuss the factors that can cause the credit score to increase, and the circumstances in which a credit score can drop.

We will also discuss the reasons that a credit score shift should not be a concern or consideration for most borrowers.

It shouldn’t come as a surprise that a record of debt repaid is a good thing.A fractional difference in interest rate on a mortgage can make a huge difference to the homeowner.People on the hunt for a house should discuss any actions that might impact their credit score with their lender or mortgage broker.Some borrowers may actually see their score drop by consolidating or refinancing.Though federal direct consolidation and private student loan refinancing are very different processes, the impact to a borrower’s credit score is similar.

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Ultimately, most borrowers will likely see a small increase in their credit score, but as noted in the comments by some readers, it is still possible that the credit score can drop.

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