Refinanced loan-will credit score suffer?

[counselor4kids]

I recently refinanced my student loan to lock in a low rate. The transaction has been complete-the loan has been paid off to the Dept. of Ed. and I will be paying a new lender. Any idea how this will affect my credit score since the loan will show as new? Is there any way for them to report my history on the old loan?

[DocDon]

The history on the old loan will remain. It should indicate "sold" or "transfered" to other lender.

If any effect, it will only lower your score a little because it is a new account, but the $0 balance on the old one should offset it.

[DocDon]

The history on the old loan will remain. It should indicate "sold" or "transfered" to other lender. Which is why it's better to leave a little balance when transferring (say 1 or 2 payments). That way, the account will read "paid in full".

If any effect, it will only lower your score a little because it is a new account, but the $0 balance on the old one should offset it.

[kbean]

good info... but what about if you refi/consoladate... before you go into repayment? will the deferred loans have had any effect on your score as of yet?

[md]

good info... but what about if you refi/consoladate... before you go into repayment? will the deferred loans have had any effect on your score as of yet?

Good question. One of my loans I haven't paid on yet and am going to consolidate. I am heavily considering making a couple payments on it so it will become "Rated" since this loan dates back to 1996. That would help me out a lot since I may be getting rid of my two old CC accounts from 1995.

You may be able to consolidate just before they go out of deferment and lock in that lower rate and then make a payment to the OC if you can leave some left. That is the only way I can think of swinging it.

when i consolidated my loans, my score dropped nearly 40 points when the consolidation loan was reported. Thankfully they only reported it to EQ.

[maax]

I consolidated too, but didn't know my score prior to the transaction. However, if I had to do it over again I'd follow the advice I've read on this board related to balance transfers.

My positive tradelines with old loans are now reported as "transferred" instead of "paid in full." If I had transferred all but the last $100 on each, and then paid that $100 in a separate transaction the following month, I'd have four or five "paid in full" loans, instead of four or five "transferred to another lender." Bummer.

[CS123]

Doc,

when you say to leave 1-2 pymnts on the loan, do yu mean when you are consolidating the loan and say I got a 10k loan. should i consolidate for $9,800. for it to read paid in full :?