Comments on: Is there a negative effect on my credit history if I refinance my student loan? I keep getting mailers…? http://www.refinancingmaster.com/is-there-a-negative-effect-on-my-credit-history-if-i-refinance-my-student-loan-i-keep-getting-mailers/ All about Refinancing Wed, 08 Sep 2010 18:27:36 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: VinTek http://www.refinancingmaster.com/is-there-a-negative-effect-on-my-credit-history-if-i-refinance-my-student-loan-i-keep-getting-mailers/comment-page-1/#comment-649 VinTek Mon, 08 Feb 2010 09:53:31 +0000 http://www.refinancingmaster.com/?p=233#comment-649 Given the fact that you don't owe much and don't have trouble with the current payment, there is no compelling reason to refinance unless you can get a lower interest rate, which would reduce your total outlay to the bank. This would be surprising to me, since interest rates have actually be rising of late. And there might be a slight temporary dip to your credit score because of the necessary inquiries, but nothing to worry about. The refi intelf would have a negligible impact. So you real question should not be if it would impact your credit score, but if there's any tangible benefit to refinancing at all. Given the fact that you don’t owe much and don’t have trouble with the current payment, there is no compelling reason to refinance unless you can get a lower interest rate, which would reduce your total outlay to the bank. This would be surprising to me, since interest rates have actually be rising of late.

And there might be a slight temporary dip to your credit score because of the necessary inquiries, but nothing to worry about. The refi intelf would have a negligible impact. So you real question should not be if it would impact your credit score, but if there’s any tangible benefit to refinancing at all.

]]> By: JB26 http://www.refinancingmaster.com/is-there-a-negative-effect-on-my-credit-history-if-i-refinance-my-student-loan-i-keep-getting-mailers/comment-page-1/#comment-647 JB26 Mon, 08 Feb 2010 09:24:54 +0000 http://www.refinancingmaster.com/?p=233#comment-647 The more you apply for credit, the lower your score. Be careful and only apply to those that you are really interested in. But it isn't going to show negatively- it just lowers it a few points. The few points is only crucial if you are on a border line of tier 1 or tier 2 credit and you are about to purchase a car or home. If you are refinancing and lowering your Debt, or getting better interest rates, after about 4 months, it may actually improve your credit. The thing they look for is that your credit cards are not above 30% of the available balance. So if you have $1000 available credit card debt, and you have more than $300 owed on those- that will decrease your score dramatically. Be careful on student loans if they are deferred. If they are deferred you are not making payments, and many times the creditor will note "no payments made" which is in agreement, and you are not in default- but it makes it look late and that can hurt you. Pull your credit regularly to make sure they do not report it incorrectly- it is a bi*ch to Fix!!! The more you apply for credit, the lower your score. Be careful and only apply to those that you are really interested in. But it isn’t going to show negatively- it just lowers it a few points. The few points is only crucial if you are on a border line of tier 1 or tier 2 credit and you are about to purchase a car or home. If you are refinancing and lowering your Debt, or getting better interest rates, after about 4 months, it may actually improve your credit. The thing they look for is that your credit cards are not above 30% of the available balance. So if you have $1000 available credit card debt, and you have more than $300 owed on those- that will decrease your score dramatically. Be careful on student loans if they are deferred. If they are deferred you are not making payments, and many times the creditor will note “no payments made” which is in agreement, and you are not in default- but it makes it look late and that can hurt you. Pull your credit regularly to make sure they do not report it incorrectly- it is a bi*ch to Fix!!!

]]> By: obe231 http://www.refinancingmaster.com/is-there-a-negative-effect-on-my-credit-history-if-i-refinance-my-student-loan-i-keep-getting-mailers/comment-page-1/#comment-646 obe231 Mon, 08 Feb 2010 09:20:47 +0000 http://www.refinancingmaster.com/?p=233#comment-646 It will not affect your credit score if you consolidate your student loan. Be careful if you consolidate, certain banks and financial institutions have "fine print" on the terms. I personally consolidated through Citibank. My monthly amount lowered almost 40%, but the negative effect is that I just extended my debt years. To prevent that from happening, I still pay the same amount before I consolidated. The extra payment goes directly to the principal. It will not affect your credit score if you consolidate your student loan. Be careful if you consolidate, certain banks and financial institutions have “fine print” on the terms.

I personally consolidated through Citibank. My monthly amount lowered almost 40%, but the negative effect is that I just extended my debt years. To prevent that from happening, I still pay the same amount before I consolidated. The extra payment goes directly to the principal.

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