Does consolidating student loans hurt credit

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When you’re ready to give debt consolidation serious consideration, be sure check out Ready For Zero’s debt consolidation tool. Debt consolidation through a debt relief company or bank usually entails this third party negotiating for lower payments or rates on your behalf, sometimes capitalizing on relationships they have already established with your creditor.

Student loans are the wildcard because they can show a payment at per month on an obligation all the way up through 0 per month and higher.10 percent is determined by the types of credit you have. Consolidating debt can adversely impact your average age of credit (15 percent of your score), your inquiries (10 percent of your score ) and total amount owed (30 percent of your score).30 percent of your FICO score is determined by your debt-to-credit ratio, or the amount of money owed.In turn you would pay off the lump sum likely at a much lower rate than say what your credit card company is offering.In turn, however, your home could be on the line if you default.

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