Does consolidating student loans improve credit score

Even when you are applying through the same lender, you are basically taking out a new loan each semester or year.Each of those loans is a separate account, so it is standard practice for students to have multiple loans reported in their history.Having more accounts is not automatically a negative factor in your credit history.For such installment loans, the important factors are how much total debt you owe and, of course, most importantly if you have missed any payments. It can be helpful if you have education debt from multiple lenders or student loan guaranty companies.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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Student loans can also negatively affect your credit if you have a high balance that isn’t budging or, with interest, possibly even growing.Student loans however, no matter how small, cannot simply be forgotten.Student loans were so easy to get in college, and so easy to forget.This is especially true if you have a bad credit score.Repeat after me: NEVER CONSOLIDATE FEDERAL LOANS WITH PRIVATE LOANS!