Consolidating student loans affect credit score

Some people consider credit card debt bad and mortgage or student loan debt good.

The truth is that having any debt means you are financially beholden to a creditor and you can’t put your money in your own pocket until your obligation is met.

A credit score is derived from items reported in your credit file.

It uses a complex mathematical algorithm to come up with a score that predicts whether you are more or less likely to default on your next loan.

Also, not all debts can be discharged in a bankruptcy. Collection accounts fall off your credit report after seven years.

Debt consolidation won't address the real problems that may sink your credit rating!The problem is that bankruptcy is a serious derogatory mark on your credit.It won’t prevent you from getting credit in the future, but for a time some credit products will be unavailable to you and others will come at very steep prices.So, you would think that student loan consolidation is a no-brainer, right? Qualifications First, there is a short list of requirements that you need to meet to qualify for student loan consolidation.Federal and Private There is also the distinction between the types of loans that you have.