News – AU – This is the credit score required to refinance your student loan However, this is not the only requirement

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borrowers looking to refinance their student loans will likely need good or excellent credit to qualify

According to Experian, one of the top three credit bureaus, 670 is generally the base credit rating lenders need to be eligible for student loan refinancing

FICO scores between 670 and 739 are considered “good” “However, eligibility requirements for some lenders allow applicants to score in the” fair “range between 580 and 669 in order to qualify”For example, Earnest, a private student loan company, says on its website that prospective borrowers must have a minimum loan value of 650

Regardless of the creditworthiness thresholds, the higher your score, the higher the chance of a lower interest rate This is one of the top reasons you should consider refinancing Your creditworthiness is the most important factor in determining your new student loan refinance rate A low interest rate not only lowers your monthly payments, it also helps you save money in the long run

In addition to your creditworthiness, however, you must meet additional eligibility requirements in order to refinance your student loan. Here are some other things to consider:

In addition to good or excellent credit, interested borrowers looking to refinance their student loans will likely also need to demonstrate:

Note that some lenders are only available in certain states Most require borrowers to be a US Citizens or permanent residents, as well as certain degrees and schools, may require additional criteria from lenders to be eligible. Check with your lender for full details before submitting an application

If you don’t qualify for a refinance yourself, you can apply to a co-signer who meets the above requirements, which can be a parent, sibling, or partner

Just make sure that both you and your co-signer fully understand all of the terms as there are some risks if someone else signs up for the refinanced loan Both the lead borrower and their co-signer share responsibility for the loan So if no payments are made, the co-signer is responsible for the repayment, and if the main borrower misses a monthly payment, his co-signer’s balance is also affected

Look Out For Refinancing From Lenders That Offer Co-Signer Releases Many lenders allow co-signers to be removed from the loan after the lead borrower has made a certain number of consecutive on-time payments This can be a relief for the co-signer knowing they are under no obligation to keep going for the life of the loan

Credit Score, Finance, Mortgage Loans

News – AU – This is the credit score required to refinance your student loan However, this is not the only requirement

Source: https://www.cnbc.com/select/average-credit-score-needed-to-refinance-student-loans/