Effect of consolidating student loans on credit score whos dating duane the rock johnson
I can't speak for every situation, but I would think those savings are worth whatever impact on your credit score that removing loans from your credit diversity might have.
And consider what you're preserving a credit score for in the first place.
Each of the bureaus provides different data, so you really have three different FICO scores -- one using data from each bureau -- that can vary.
Why share all this confusing nonsense about credit scores and bureaus?
However, FICO remains the most used and is often a good indicator for other scores.
And so, if people are right in saying that paying off early can reduce your credit score, why do I say that shouldn't really matter?so it's basically just like financing a fridge with equal monthly payments? FICO: "Yeah, a fridge." (Now I'm paraphrasing.) So, if that's the case, how and why would paying off an installment loan early adversely affect your credit?The answer is this: what considered by FICO, and many other credit scores, is the diversity of your credit.You shouldn't categorically avoid taking any action because it may lower your credit score.In fact, if you did, you'd never apply for any kind of credit due to the adverse (and mostly negligible) effect of a hard credit check, and the score would be useless to you anyway.