And if you’re struggling to make your payments, you may be unqualified to refinance into a more suitable arrangement.
Here’s the really bad news on student loan debt refinancing: Many of the larger student loan debt refinancing organizations will follow this same standard.
But many lenders do what is known as a soft credit pull, which doesn’t show up on your credit report at all.
But even if the potential lender does a “hard credit pull,” resulting in an actual inquiry, it still may not count against you, or at least not heavily.
So, does that mean that you shouldn’t even try to refinance your student loans if you have anything less than a credit score of 700?
Well, in some cases, you need to wait until your credit score is that high.
Even 660 is fairly high for a new graduate who hasn’t had much time to build a good credit history.
But it makes sense that lenders require this level of financial reliability, especially since student loans often represent a huge debt.
Here, we’ll explore industry trends to look at exactly how your current credit score may affect your ability to refinance your student loans.Fortunately, your FICO score calculation recognizes when you’re shopping for a loan.As such, your score considers all inquiries within a 45 day period for a mortgage, an auto loan or a student loan as a single inquiry.Compensation may impact how and where products appear on non-editorial pages (e.g., comparison or "marketplace" pages).That said, our standard is that we will never accept advertising from a product which we wouldn't use ourselves.Dough Roller receives compensation from some companies issuing financial products, like credit cards and bank accounts, that appear on this site.Unless a post is clearly marked "Sponsored", however, products mentioned in editorial articles and reviews are based on the author's subjective assessment of their value to readers, not compensation.And that inquiry is likely to result in a hit to your credit score of no more than five points at worst.So, have no fear of applying to refinance your student loan debts.Refinancing, on the other hand, is not nearly that simple.Once you finish school and you’re out in the workforce, lenders will expect you to qualify for a refinance of your student loan in the same way that you would need to qualify for any other type of loan that you might take.