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In other words, the value of a good credit score is the chance to save money.
The borrower still has the same amount of debt, but the number of lines of credit goes down, thus raising the credit score.This could be bad for borrowers who don’t have any items on their credit report other than a student loan.If the old lines of credit, the original student loans, are closed and the new loan is the only open account, the age of credit will drop significantly.One factor that determines credit score is the number of lines of credit that are open.
If consumers have too many, their score will go down.
The main explanation for a drop in credit score is due to age of credit.