Student loan borrowers with a good credit score generally have a better chance of qualifying for student loan refinancing. Typically, a credit score to refinance student loans is at least 670.
The higher your credit score, the more likely you are to be approved for refinancing, and also to get a lower interest rate and favorable loan terms. Here’s what you need to know about the credit score needed to refinance student loans.
Table of Contents
- What Credit Score Do You Need to Refinance Student Loans?
- Understanding the Credit Score Requirement
- Other Requirements to Refinance Student Loans
- Strengthen Your Credit Score for Refinancing
- Alternatives to Refinancing
- How Refinancing Impacts Your Credit Score
- Making Informed Decisions About Student Loan Refinancing
- FAQ
Key Points
• Most lenders require a good credit score, typically between 670 and 739, to refinance student loans.
• Some lenders may accept credit scores as low as 580 for refinancing.
• Checking with various lenders is important as credit score requirements can vary.
• In addition to making a borrower eligible for student loan refinancing, a higher credit score may also help secure better interest rates and terms.
• It’s beneficial to review and compare offers from different lenders before choosing a refinancing option.
What Credit Score Do You Need to Refinance Student Loans?
Many lenders typically require borrowers to have at least a good credit score to refinance student loans. FICO®, the credit scoring model, considers a score of 670 to 739 to be good.
Some lenders may even require an excellent credit score to refinance student loans. In FICO’s model, 740 to 799 is considered very good, and 800 to 850 is considered exceptional.
Generally speaking, the higher the credit score, the better a borrower’s chances of getting favorable interest rates and terms.
Understanding the Credit Score Requirement
Your credit score is important because it gives lenders a review of your borrowing and repayment habits. It’s based on information from your credit report, which is a detailed record of activity on all of your credit accounts. A credit score tells lenders how well you’ve managed your credit and repayments.
With student loan refinancing, many lenders are looking for a good credit score of at least 670. That’s because a higher score generally indicates that you’re likely to repay your debts on time.
Some lenders have more flexible credit score requirements than others, and they may set a minimum credit score for student loan refinance that may be as low as 580. This is the lowest eligible credit score they’ll accept for student loan refinancing. However, higher is usually better when it comes to a credit score to refinance student loans.
Recommended: Guide to Refinancing Private Student Loans
Other Requirements to Refinance Student Loans
In addition to your credit score, lenders have other student loan refinance requirements to meet. These eligibility requirements include:
Income
Lenders look for borrowers with a stable income, which indicates that you have enough money coming in to pay your bills. You will likely have to provide lenders with proof of your employment and income, such as pay stubs.
If you’re a contract worker or freelancer whose income is more sporadic, you may need to provide your tax returns or bank account statements to show that you have enough funds in your bank account.
Debt-to-Income Ratio
Your debt-to-income (DTI) ratio is a percentage that shows how much of your income is going to bills and other debts versus how much income is coming in each month. The lower your DTI, the better, because it indicates that you have enough money to pay your debts, making you less of a risk to lenders.
To calculate your DTI, add together your monthly debts and divide that number by your gross monthly income (your income before taxes). Multiply the resulting figure by 100 to get a percentage, and that’s your DTI.
Aim to get your DTI to below 50%, or even below 40%, if possible, and pay off as much debt as you can before you apply for student loan refinancing.
Credit History
In addition to your credit score, lenders will also look at your credit history, which is the age of your credit accounts. Having some active older credit accounts shows that you have a solid pattern of borrowing money and repaying it on time.
Minimum Refinancing Amount
Lenders typically have a minimum refinancing amount, which refers to the lowest amount of student loan debt they’re willing to refinance. For some lenders, the minimum refinancing amount is between $5,000 and $10,000. For others, it may be higher or lower.
Lenders set minimum refinancing amounts to ensure that they will earn enough interest on the loan. If the amount you owe falls within a lender’s range, then you meet the minimum.
Strengthen Your Credit Score for Refinancing
If your credit score isn’t high enough to meet a lender’s minimum score requirement, you can work on strengthening it and apply for refinancing at a later date. The following strategies may help you build credit over time.
Make Timely Payments
Making full, on-time payments on your existing credit accounts can positively impact your credit score. Payment history accounts for 35% of your FICO credit score calculation, and it’s the first thing lenders look at when evaluating your eligibility.
Lower Your Credit Utilization Ratio
Another important factor is your credit utilization, which is the ratio of how much outstanding debt you owe, compared to your available credit. Your credit utilization ratio accounts for 30% of your FICO score.
Keeping your credit utilization low — below 10%, if possible — can be an indicator that you’re not overspending.
Maintain Your Credit History
A longer credit history can also have a positive impact on your credit score. The length of your credit history is the age of your active credit accounts. Keeping older accounts active and in good standing shows that you’re a steady borrower who consistently makes their payments.
Keep a Balanced Credit Mix
As you’re establishing credit, it’s a good idea to mix it up a bit with different kinds of credit. Having revolving accounts such as credit cards, as well as installment credit like student loans or a car loan, shows you can responsibly handle different types of credit. This factor affects 10% of your credit score calculation.
Alternatives to Refinancing
If your credit isn’t strong enough for you to qualify for student loan refinancing, you have a few other options to help manage your student loan payments. Some ideas to explore include:
Student Loan Forgiveness Programs
There are a number of federal and state student loan forgiveness programs that borrowers may be eligible for. These programs typically forgive some of a borrower’s student debt if they meet certain requirements.
For instance, the Public Service Loan Forgiveness (PSLF) program is for federal student loan borrowers who work in public service for a qualifying employer such as a not-for-profit organization or the government. For those who are eligible, PSLF forgives the remaining balance on federal Direct loans after 120 qualifying payments are made under an income-driven repayment (IDR) plan or the standard 10-year repayment plan.
Individual states may offer their own forgiveness programs. Check with your state to find out what’s available.
Income-Driven Repayment Plans
You may be able to reduce your federal loan monthly payment with an income-driven repayment plan. These plans base your monthly student loan payments on your discretionary income and family size.
Under the three current IDR plans, your monthly payments are typically a percentage of your discretionary income, which usually means you’ll have lower payments. At the end of the repayment period, which is 20 or 25 years, depending on the IDR plan, your remaining loan balance is forgiven.
Just be aware that as of July 1, 2026, the current IDR plans will be closed to new borrowers. At that time, the Education Department will launch the Repayment Assistance Plan (RAP), which bases monthly payments on a borrower’s adjusted gross income (AGI). Borrowers will pay 1% to 10% of their AGI over a term of up to 30 years. At the end of the repayment term, any remaining loan balance will be forgiven.
Consolidation vs Refinancing
Whether consolidation or refinancing is right for you depends on the type of student loans you have. If you have federal student loans, a federal Direct Consolidation Loan allows you to combine all your loans into one new loan, which can lower your monthly payments by lengthening your loan term. The interest rate on the consolidation loan will not be lower, however — the rate is a weighted average of the combined interest rates of all of your consolidated loans.
Consolidation can simplify and streamline your loan payments, and your loans remain federal loans with access to federal benefits and protections. But a longer loan term means you’ll pay more in interest over the life of the loan.
If you have private student loans, or a combination of federal and private loans, student loan refinancing lets you combine them into one private loan with a new interest rate and loan terms. Ideally, depending on your financial situation, you might be able to secure a new loan with a lower rate and more favorable terms.
If you’re looking for smaller monthly payments, you may be able to get a longer loan term. However, this means that you will likely pay more in interest overall since you are extending the life of the loan. On the other hand, if your goal is to refinance student loans to save money, you might be able to get a shorter term and pay off the loan faster, helping to save on interest payments.
Using a student loan refinance calculator can help you determine how much you might save with refinancing.
Just be aware that if you refinance federal loans, they will no longer be eligible for federal benefits like IDR plans and federal forgiveness programs.
How Refinancing Impacts Your Credit Score
Refinancing can have an impact on your credit score. When you fill out an application for refinancing, lenders do what’s called a hard credit check that can negatively affect your score. The impact is likely to be less than five points of reduction to your score, and the effect is usually temporary, lasting no longer than 12 months, according to the credit bureau Experian.
To keep your credit score as strong as possible before and during refinancing, shop around and prequalify to see the best loan rates and terms you can get. Unlike filling out a formal loan application, prequalifying typically involves a soft credit pull that won’t affect your credit score.
Also, if you choose to fill out refinancing applications with more than one lender, applying during a short window of time, such as 14 to 45 days. When multiple similar credit inquiries are conducted within a short time frame, some lenders may count them as one application, which may lessen the impact to your credit.
Finally, keep paying off your existing student loans during the refinancing process. If you stop repaying them before refinancing is complete, your credit score may be negatively affected.
Making Informed Decisions About Student Loan Refinancing
As you’re considering refinancing, weigh the pros and cons of refinancing your student loans. Advantages of student loan refinancing include possibly getting a lower interest rate on your loan, adjusting the length of your payment term, and streamlining multiple loans and payments into one loan that’s easier to manage.
But remember: If you’re refinancing federal student loans, you will lose access to federal protections and programs like income-driven repayment plans. And refinancing may be difficult to qualify for on your own if you don’t have a good credit score and solid credit history, so you may need a student loan cosigner. Make the decision that’s best for your financial circumstances.
The Takeaway
If you decide to move ahead with refinancing, be sure that your credit score is as strong as it can be. The higher your credit score, the more likely you are to be approved for refinancing, and also to get a lower interest rate and favorable loan terms.
Ways to help build credit include making on time payments on your existing credit accounts, keeping your credit utilization low, and maintaining a mix of different types of credit to show that you can handle them responsibly.
Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.
FAQ
What credit score do you need to refinance student loans?
Most student loan refinancing lenders look for borrowers with a good credit score, which FICO® defines as 670 to 739. Other refinancing eligibility requirements typically include having a steady income and a low debt-to-income ratio.
Can you refinance student loans with bad credit?
Refinancing student loans with bad or poor credit, which FICO defines as a score of 300 to 579, can be difficult. If your credit score is in the poor or bad range, you may want to consider refinancing with a creditworthy cosigner, which could help you get approved for refinancing and may also result in a lower interest rate and more favorable terms. But be aware that the cosigner is responsible for the loan if you can’t repay it.
Does refinancing student loans hurt your credit score?
Refinancing can have a negative impact on your credit score, though it’s usually temporary. When you fill out an application for refinancing, lenders do a hard credit check that can negatively affect your score. The result is likely to be less than five points of reduction to your credit score, and the effect typically lasts up to 12 months, according to Experian.
Can a cosigner help you refinance student loans?
If you have a poor credit score or a slim credit history, a creditworthy cosigner could help you get approved for student loan refinancing. You may also be able to qualify for a lower interest rate and a more favorable loan term with a cosigner. Just remember that a cosigner is equally responsible for the loan, so if you miss payments their credit will also be impacted. And in the event you can’t repay what you owe, the cosigner is responsible for it.
What is the minimum credit score for student loan refinancing?
Each lender has its own specific requirements, including the credit score needed to refinance. Most lenders look for applicants with a good score, which starts at 670, according to FICO. However, some lenders set a minimum credit score, which may be as low as 580. Check with different lenders to see what their requirements are.
SoFi Student Loan Refinance SoFi Loan Products
Terms and conditions apply. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FORFEIT YOUR ELIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE. Lowest rates reserved for the most creditworthy borrowers. Learn more at SoFi.com/eligibility. SoFi Refinance Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).
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