top of page

"Unraveling the Madness: How a Simple Student Loan Consolidation Tanked My Credit Score"

Updated: Feb 19

This person, a diligent individual, is planning to talk to a lender with her fiancé this October about their housing option. Decided to take control of her financial situation by consolidating her student loans and was about to dive headfirst into a labyrinth of confusion.

In a world where financial systems are meant to make life simpler and more manageable, there are times when they leave us scratching our heads in bewilderment. Take, for instance, the perplexing case of this person, who dared to consolidate her student loans, only to watch her credit score plummet. It's a tale that showcases the nonsensical quirks of the credit rating system and leaves us questioning the logic behind it all.

Imagine this person's surprise when, after consolidating her student loans, she noticed her credit score had taken a significant hit. It was like buying a healthier snack and finding out it had more calories than the junk food it replaced! How could a financially prudent decision lead to such an unexpected outcome?

The credit scoring system is often touted as a reliable indicator of financial responsibility, but its inner workings can sometimes resemble a riddle wrapped in an enigma.

What makes this situation even more absurd is that it defies basic financial common sense. This person's scores should not have dropped simply because she consolidated the loans. But what happened is once the old loans were closed out and then they all turned in to one new loan, the new loan impacted the average age of time established which is 15% of the credit score.

The client’s credit score dropped from 668 down to 645 Equifax, 696 down to 653 Trans Union, 688 down to 649 Experian.

This blog is to show how crazy system does not make sense. Until then, let's navigate this bewildering landscape with caution and a healthy dose of skepticism.

2 views0 comments

Recent Posts

See All


bottom of page