For many Americans, the high cost of student loans can delay plans of buying a home, saving for emergencies or putting money toward retirement. Refinancing your student loans is one way to ease that burden, but borrowers with little financial history may find that route challenging.

Private lenders check your credit score when you apply for refinancing, and many require you to have a credit score of at least 650 to qualify. Here’s what to know if you think that your credit score could hold you back.

The lowest credit scores accepted for student loan refinancing

Since refinancing comes from private lenders, every loan servicer has unique credit requirements. However, lenders generally want to see credit scores in the upper-600s. For instance, Earnest requires a credit score of at least 680, and CommonBond ups that to 660.

Your credit score is one essential factor in determining your eligibility, but it’s not the only factor. Some lenders don’t advertise minimum credit score requirements because of other considerations, like your income and how long you’ve been making payments on your current loans.

How to improve your credit score

The higher your credit score, the more likely you are to not only get approved but also secure the lowest interest rate offered. Interest rates also vary by lender, so you’ll only better your chances of getting a good deal by improving your credit score before applying to refinance your student loans.

Check your credit reports

Before your lender sees your credit score, you can check your reports with the top three major credit bureaus — Equifax, Experian and TransUnion — through This lets you see what potential lenders will see: your past credit usage, if you’re responsible with credit and if you have any bad marks.

If you notice any errors, you can report them to the credit bureau. Incorrect information could reduce your score. By removing them, you can give your score a quick boost. You should also use any resources from your bank or credit card issuer; most give you access to your credit score for free.

Stay on top of payments

Even if you’ve been struggling to make payments, you’ll need to be able to prove an on-time payment history with your current loans. Payment history makes up 35 percent of your FICO Score, so the more payments you make late — or miss — the more your score will drop. Keep your credit score as high as possible by making minimum payments when they’re due.

Lower your credit utilization rate

Your credit utilization is how much of your available revolving credit you’re using. For instance, if you have a $6,000 credit limit and use $3,000 of it, your credit utilization is 50 percent. This goes for total utilization, not just per card. So if you have two cards with a $12,000 total limit and use $3,000, your credit utilization is 25 percent.

Credit utilization makes up 30 percent of your FICO Score. As long as you’re paying off your cards in full every month and don’t carry a balance, your credit utilization will stay relatively low. But if you do carry a balance, try to keep your credit utilization to 30 percent or less. You can also request a credit limit increase. If your card issuer approves it, you’ll get a quick reduction in your credit utilization.

Take advantage of self-reporting

If your credit report is sparse, see if you can add some other accounts that are in your name. Experian Boost factors in accounts like your phone bill, utilities and even streaming services. Some services even let you self-report rent payments.

Limit new accounts

New credit is a necessary evil for your credit score. It makes up 10 percent of your credit score, meaning it’s a small but still important part of your credit history.

But too many accounts can hurt. Every time you apply for new credit, your score takes a temporary dip. Along with that, applying to many different lenders at once brings down your average account age, which is also a factor in your FICO Score.

How to refinance student loans with a bad credit score

If you have bad credit, you aren’t entirely out of luck when refinancing. Some lenders look at more than your credit score when you apply. For example, Earnest claims that in addition to the minimum credit score requirement, it considers your savings, education and earning potential to make approval decisions. Applying with a lender that broadens its eligibility criteria could help you get approved or get a lower rate.

Getting someone to co-sign your loan is also an option, especially if you have a credit score below 650. When you add a co-signer, their credit and income is taken into account for approval and rate decisions; for many people, a co-signer is the only way to get approved for refinancing with a bad credit score.

Student loan refinancing alternatives

If you have stellar credit and can qualify for an interest rate lower than what you’re currently paying, refinancing might be a great next step for you. But it’s not the right move for everyone. If you don’t qualify for student loan refinancing or you want to explore other options for managing your student loan repayment, consider these:

  • Income-driven repayment plans: If you have federal student loans, you can explore IDR Plans. These base your payments on your income and household size. After 20 or 25 years, the remaining balance on your loans is forgiven. Your credit score doesn’t determine your eligibility for these plans, like student loan refinancing.
  • Consolidation: If you want to move all your federal loans into one manageable payment, you can apply for a Direct Consolidation Loan. Your interest rate is rounded up to the nearest one-eighth percent, so you won’t get a lower interest rate as you might through refinancing. But you also won’t lose the federal protections — like deferment and forbearance — that come with having federal student loans.
  • Forbearance: Forbearance is when you temporarily pause student loan payments without impacting your credit score. The federal government and some private lenders offer this option. You can check with your lender to see if you’re eligible for forbearance before applying.

Bottom line

The credit score you need to refinance your student loan varies by lender but is often 650 or higher. The higher your credit score, the better your chances of qualifying for a loan with a lower rate. In addition to your credit score, lenders consider other factors, like your DTI and repayment term. If you’re having trouble qualifying for a lower rate, adding a co-signer with better credit can help.

Before you refinance federal student loans, understand that doing so means giving up benefits, like access to federal forbearance and student loan forgiveness programs. If you plan to use those benefits, consider student loan consolidation instead.

Frequently asked questions

What other factors determine your loan rate?

Although your credit score is an important factor, it’s not the only thing student loan refinancing lenders consider when calculating your rate. They generally consider other factors, such as:

  • Debt-to-income (DTI) ratio: Your DTI is how much monthly debt you have compared to your monthly income. The lower your DTI, the better your chances of qualifying for a new loan with a lower rate.
  • Repayment term. Some lenders may charge you a higher rate if you take out a student loan with a long-term versus a shorter one.
  • Co-signer: When you apply for student loan refinancing with a co-signer, a lender will take their credit score and financial situation into account — if they have good credit, it may help you secure a lower rate.

What credit score gets the best student loan refinance rate?

Beyond determining your chances of getting approved for a refinance loan, your credit score also impacts the cost of that loan. If you have a credit score of 650, you may be approved — but you’ll also likely face the highest interest rates the lender offers. If you have good credit, you can secure a lower rate that reduces both your loan’s monthly payment and the overall cost of the loan.

In general, lenders see credit scores of 740 or higher as very good and those over 800 exceptional. If you have very good credit, you can often qualify for the best rates. However, credit scores aren’t everything, and you’ll need a solid income and a good debt-to-income ratio too.

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