Does bad credit affect student debt consolidation?
On One Hand: Yes It Does.Your credit score affects any loan you apply for. Bad credit can mean paying higher interest, increased late fees and/or annual usage fees. Very bad credit, if it doesn’t get your consolidation denied outright, can mean the bank requires a co-signer.On the Other: Not So Bad for Student Loans.Student loans, and by association many student loan consolidation deals, benefit from strong protections by the federal government. For example, student loans carry through as owed even after bankruptcy. Because of these protections, companies offering student loan consolidation are willing to work with worse credit than many other kinds of loans. They’re at less risk, so they can loan money on better terms.Bottom LineYour credit score can affect the terms of a student loan consolidation deal.
