Does consolidating your student loans hurt your credit

Those are the two biggest factors in determining your credit score.So many times, your score goes up as your debt goes down.Basically, this happens because there can be a gap between when a payment was supposed to be made on your previous payment schedule and the payments you’re making now.This only happens in the first month of the program.

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The number of accounts you have that have balances is one factor in how your credit score is calculated.And if you follow this theory, paying a loan off early might sound like an excellent strategy for building your credit score.Unfortunately, paying off non-credit card debt early may actually make you less credit-worthy, according to scoring models.And a common strategy for building our credit scores is to pay off debt, which can help improve a credit score, especially if the card holder is carrying a large balance.It seems logical, then, to assume that the same strategy applies to other types of accounts — like a car or home loan, for example.

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