But what happens when you consolidate a student loan? Having good credit is crucial to so many aspects of your financial life-everything from buying a house or car to landing a job. It’s smart to know how refinancing will look to creditors before you make the move. It’s important to note here that while we’re using the word consolidate to refer to replacing several different loans with a single loan from a private lender, the actual word for this is refinancing.
Consolidation technically refers to replacing only your federal loans with a single Direct Consolidation Loan through the federal government-a different process than refinancing. Most people use the two terms interchangeably.
Now that we’ve got that out of the way, here’s an overview of the issues to consider when it comes to refinancing and your credit. Continue reading “Will Consolidating My Student Loans Help My Credit Score?”