Will Consolidating my college or school Loans help in my credit?
Financial experts have sited that "Consolidating student loans is one of the most effective ways to improve your FICO score". These financial experts have concluded that a few additional points on a FICO score can have a dramatic impact by potentially saving thousands of dollars of interest over a lifetime by locking in low interest rates on houses, cars, and other items purchased later with credit."
Potential lenders generally review the debt to income ratio when determining the amount of credit they will lend a potetnial customer. For those folks who are just starting their careers, the lower monthly payments that result from consolidating a student loan can make a highly favorable impact on debt to income ratio.
Thus, for borrowers who refinance their student loans most often save well over 30-40% on their monthly payments. Often, these young adults who are just leaving school and starting their lives, families and careers already have the chips stacked against them when it comes to finances.
Clearly, the main benefits of school loan consolidation is that with the "money saved from student loan consolidation, borrowers can pay down high interest credit debts." In this manner, they will more quickly achieve their financial freedom from debt much earlier in their lifetime!