Does consolidating student loans hurt credit
If you have a good score and healthy looking credit report, and are in the market for a loan, you are using your credit history and credit rating utility function.
Even when the credit markets do fully break out, lending standards like those from 2005 are not going to come back… Applying for a card on line and getting a 25k credit limit, with thin employment and credit history, is probably gone for good.The utility function can be returned once the debts you are dealing with have been resolved, or paid down to a point where you’re credit utility returns.Credit counseling services, debt settlement programs, and bankruptcy are the 3 main debt intervention options.Focus on solving your personal debt and budget crisis first.Credit will be available again, and much quicker than you may have thought.Long term this will mean a savings of tens, if not hundreds of thousands of dollars.
Just think about what a percentage point or two on an interest rate tied to a 30 year fixed mortgage can mean to you in savings over the life of the loan!
Your credit reports and credit score will heal and bounce back given time.
And this is true no matter what path you take to resolve your debts.
What may surprise you is that all of these methods for resolving debt track fairly closely with the other when it comes to being able to access new credit products.
Hopefully you are now better prepared to understand that when you are struggling with debts you can no longer afford, but are more concerned with your credit score, your attention is on the wrong thing.
This page will also help to dispel some myths that get regurgitated across the web.