Will consildating my student loans help my fico scores
For example, if you had an original student loan of ,000 and one credit card limit of ,000, with 00 owed to your student loan and 0 owed to your credit card, then your ratio is: When the loan is paid off, you lose the above advantages, and so your credit score could very well drop. CID=70180000001Tx Kr&utm_medium=Scores_Independent&utm_campaign=FY18_Q1_Nor AM_Homepage_Banner_Scores_Independent&utm_source=Homepage_Banner "FICO has built analytic models for multiple markets that consider alternative data, such as bill payment and non-financial data (like mobile device and retail purchase information)" It appears, many variables go into a FICO score. While I have never seen a true FICO score often enough to test it I have seen multiple alternative scores that can jump back and forth a fair amount (although not 50 points) based on whether my utilization that month was 0% or 1%.But don't fret, the drop in the credit score is inconsequential in comparison to the fact that you don't have student loans anymore, and in your case, are also debt free. So, lets say you pay off your student loan, but cut back on spending - or moved to a different neighborhood, sold your car..behavior will affect your FICO score. This was entirely from what I charged that month, I'm not carrying any debt.Of course, if you have no other accounts, you'd have a 0/0 utilization.I don't know how the Bureaus handle that, but 0/0 =/= 0... If you have vary few accounts, dropping one may be enough to significantly impact this portion of the score (though it's a small portion IIRC..) Thirdly , dropping the student loans probably dropped the average age of your accounts.You borrowed a ton of money to pay for your tuition and other college expenses.
For many consumers this could mean you took out a new loan every single semester during your undergraduate and (if applicable) graduate studies as well.And, at the same time your student loans came out of deferment and landed squarely on your credit reports. Due to the fact that borrowers often make a single monthly payment for their student loan debt, many graduates are actually quite surprised to learn that they have multiple student loan accounts appearing on their credit reports.In fact, even if you used the same lender over and over again, the fact of the matter is that you actually opened a brand new account and took out a new loan each time you filled out a financial aid application and accepted funds.I would expect that for many people with student loans, they are one of their oldest credit accounts, if not the oldest.Age of accounts is a pretty significant factor in the FICO calculation, and it's quite possible that it just dropped by a couple of years.