Consolidating school loans credit score


07-Aug-2016 08:27

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The short answer to that question is: Just like any other line of credit affects your credit score.

While consolidating federal student loans may give you a much-needed break on your monthly student loan payments, that lower monthly payment amount comes with a price.Luckily, borrowers now have the opportunity to receive some of the best student loan consolidation fixed interest rates ever.By consolidating, borrowers not only reduce their long-term debt but also can help change their credit score for the better over time.An improved credit score will be important when a person enters the working world and wants a new car, apartment, or charge card.

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Here are some tips for borrowers that can help them as they enter the job market.

Federal loans almost always have better rates and terms than private loans, and once a federal loan is consolidated with a private loan, the benefits of the federal loan essentially disappear.



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