Will consildating my student loans help my fico scores
You borrowed a ton of money to pay for your tuition and other college expenses.After four years, give or take, you graduated and entered the real world.And, at the same time your student loans came out of deferment and landed squarely on your credit reports. Due to the fact that borrowers often make a single monthly payment for their student loan debt, many graduates are actually quite surprised to learn that they have multiple student loan accounts appearing on their credit reports.In fact, even if you used the same lender over and over again, the fact of the matter is that you actually opened a brand new account and took out a new loan each time you filled out a financial aid application and accepted funds.Each disbursement of funds you received will typically be reported on your credit reports as a completely separate account.For many consumers this could mean you took out a new loan every single semester during your undergraduate and (if applicable) graduate studies as well.I still had several years on my student loan, but I paid it off a few months ago.
Personal or demographic information such as age, race, address, marital status, income and employment don't affect the score. Most credit scores operate within the range of 300 to 850. Excellent Credit: 750 Good Credit: 700-749Fair Credit: 650-699Poor Credit: 600-649Bad Credit: below 600Remember, lenders all have their own definitions of what is a good credit score. This is true even if your student loans are in deferment, in forbearance, or if you are actively making on-time monthly payments.The reason why the existence of multiple student loans, even those with no negative payment history, can be have a negative impact on your credit scores is due to the fact that scoring models like FICO and Vantage Score consider the number of accounts with balances currently appearing on your credit reports in their scoring processes.There are three main credit bureaus that collect and maintain the information that determines individuals Credit Scores: Equifax, Experian, Trans Union Why do credit scores vary between the three bureaus?Each of the agencies: The 5 factors that make up a FICO credit score: Payment history: (35 percent) -- Account payment information, including any delinquencies and public records.
Credit score is a three-digit number generated by a mathematical algorithm using information in your credit report.