Can consolidating student loans help your credit
Make sure to stay current on your refinanced student loan so that you can keep chipping away at debt and building your credit score with on-time payments.While student loan refinancing can be a strategic move for saving money on interest and getting out of debt, it’s not for everyone.
Of course, if you submit multiple full applications, your credit score could take a bigger hit.The simple answer is that refinancing will have minimal impact on your credit — as long as you go about the process the right way.Here’s what you need to know about how to refinance student loans while preserving your credit score.That way, you can limit the number of inquiries on your credit report.But you should note that your preliminary offer could change after the lender pulls your full report.If the offer is no longer attractive to you, you might have to start over.
Whatever happens, try to keep the number of full applications — and thus hard credit inquiries — to a minimum to protect your score.
Many lenders make it easy to pre-qualify for an offer with no impact on your score.
Only a full application will require a hard credit check, so try to submit just one once you find the best offer.
That’s why the way you go about applying for refinancing, as well as how you handle your new loan, is a key factor in determining whether refinancing will hurt your credit.
As long as you shop for offers in the right way and keep up with student loan payments, refinancing your student loans shouldn’t put your credit score at risk.
Choosing to refinance student loans can be one of the smartest ways to optimize your debt repayment.