Will Consolidating my student loans affect my credit score?

Jun 232010
 

I asked this in the general credit forum but maybe it would be easier addressed here since no one seemed to have an answer there.

 

I have 2 student loans which are in good standing, always paid on time I have never been late. I recently received an offer to consolidate them which would get me a lower interest rate and lower monthly payments. My question is will this negatively impact my credit rating? I have no problem paying them as they are now but it seems to make sense to take the lower interest rate and smaller payments if it will not be detrimental to my credit. I am looking to buy a house by the end of the year and I don’t want to do anything that will lower my score.

 

Thanks

Completely new to this, want to get back on track.

Jan 282010
 

Hi everyone!

 

This seems to be the best credit forum with the most informative people on the internet and I would like to reach out for some guidance from those who know better than I do.

 

I’ve been *very* bad so far in my life with credit; I’ve abused it and taken it for granted. I now find myself wanting to become a functioning member of society — I have a serious job and am starting to move up in life. The biggest weight on my shoulders right now is my horrible credit, and without seriously hunkering down and taking care of it, I can kiss any hopes of a car or house goodbye. Heck, I couldn’t get credit at McDonald’s right now if they offered it.

 

After reading many posts on this forum, I’ve taken the first step and signed up with USAA’s CreditCheck Monitoring Premium. Experian’s PLUS Score system rates me as the following: Experian – 525 / Equifax – 565 / TransUnion – 525. It says I have 16 accounts listed as negative with 12 accounts listed as being in collections. 

I’ve moved twice in the last two years and changed phone numbers, not to dodge anyone or anything, but because of job changes or situation changes. It seems I’ve inadvertently disappeared off my creditors’ radars. I’ve received *one* collection letter since I’ve moved to my current residence…I am not being called, bullied or threatened. I have not been served any papers. All that’s happened is — my credit is destroyed.

 

Fine folks of the FICO Forums: Where do I begin?

 

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