What Credit Score Do You Need to Refinance Student Loans? (Plus How to Improve It)

Refinancing your student loans can lower your interest rate and monthly payment—but only if you meet a private lender’s qualifications. Most lenders look for a minimum credit score of 670, and the best rates are usually reserved for borrowers with scores in the 700s or higher.

If your score is lower, don’t worry. In this guide, we’ll explain what credit score you need to refinance student loans, how lender requirements vary, and what steps you can take to improve your chances of qualifying.

Table of Contents

1. What credit score do you need to refinance student loans?
2. Requirements by lender
3. Best credit score to refinance student loans
4. Does refinancing student loans hurt your credit?
5. Other approval factors
6. How to refinance with a low credit score
7. Should you refinance with a low credit score?
8. Alternatives if you can’t refinance
9. FAQ

What credit score do you need to refinance student loans?

To refinance student loans, you’ll typically need a credit score in the “good” range—670 or higher. That’s the threshold many private lenders use when evaluating borrowers. A higher score can lead to better interest rates and lower total repayment costs.

Still, every lender is different. Some accept scores as low as 650, while others may require a stronger credit profile, especially for larger loan amounts or better terms. If your credit score is below 670, you may still have options, but you’ll likely need a cosigner or be willing to accept less favorable rates.

Using a cosigner can boost your chances of approval and help you qualify for better rates. Just know that any missed payments hurt both your credit and theirs. If you default, your cosigner is fully responsible—so it’s a serious commitment for both of you.

Minimum credit score requirements by lender

Here’s a look at the minimum credit score requirements for several student loan refinance lenders:

Lender	Minimum credit score
SoFi	650
Credible	670 (varies by partner)
Earnest	665
Sparrow	650
NaviRefi	680
College Ave	Mid-600s
Laurel Road	670
Citizens Bank	High 600s
MPOWER	None

While most lenders want to see a good credit score, options like MPOWER may work for international or credit-invisible borrowers. Always confirm current requirements with the lender before applying.

Best credit score to refinance student loans

If you want access to the lowest refinance rates, aim for a credit score of 740 or higher. Borrowers in the “very good” to “excellent” range (740 to 850) often qualify for interest rates one to two percentage points lower than those in the high 600s.

Your credit score isn’t the only factor. Lenders also evaluate your income, debt-to-income ratio (DTI), and employment history when determining your refinance terms. However, a strong credit score is the single biggest factor in securing the best deals.

Does refinancing student loans hurt your credit?

Refinancing your student loans can cause a temporary dip in your credit score, but the effect is usually small. When you apply, lenders conduct a hard credit inquiry, which may lower your score by a few points.

However, if refinancing helps you reduce your debt or make on-time payments more easily, your score may improve over time. Just avoid applying with too many lenders at once and make sure you continue to pay all existing loans on time until your new refinance loan is finalized.

Other refinance approval factors

While your credit score plays a leading role in your ability to refinance, it’s not the only piece of the puzzle. Lenders also assess your overall financial stability to determine whether you’re a good candidate.

Most lenders want a steady employment history—typically at least two years in the same field or job—along with a reliable income that suggests you can manage monthly payments. Your debt-to-income ratio (DTI) is another primary consideration. A lower DTI (ideally under 40%) tells lenders you’re not stretched too thin financially.

In short, even with a strong credit score, lenders might reject your application if your income is too low or your DTI is too high. On the flip side, borrowers with a borderline credit score might still qualify by showing strong income and low debt.

How to refinance with a low credit score

If your credit score is below 670, you may still be able to refinance, but approval will likely depend on other factors or support:

1. Add a qualified cosigner.
   A cosigner with strong credit can improve your chances of approval and help you qualify for better rates. Just be sure they understand their legal responsibility for the loan if you can’t repay.
2. Take steps to raise your score.
   Focus on paying bills on time, reducing credit card balances, and avoiding new debt. Even a 20 to 30 point increase could push your score into the qualifying range.
3. Choose a more flexible lender.
   Some lenders, such as MPOWER, cater to borrowers with lower or alternative credit backgrounds. Compare your options before giving up.

Should you refinance with a low credit score?

Refinancing student loans with a low credit score can be risky. While it may seem like a good way to simplify payments or lower your rate, approval is harder to get—and if you do qualify, your new rate could be higher than what you’re already paying.

Still, refinancing may be worth exploring in certain cases. For example, if you have a well-qualified cosigner or a stable income that offsets your lower score, you might land a better rate.

If you can’t access a rate that saves you money, it’s usually better to wait, build your credit, and revisit your refinance options later.

If your credit score is low, I usually suggest waiting to refinance. Focus on making on-time payments, setting up payment plans for any overdue bills, and boosting your income. Even small improvements can raise your score and lower your debt-to-income ratio, putting you in a better spot.

Alternatives if you can’t refinance

If you don’t qualify for student loan refinancing right now, you still have options.

• For federal student loans, enrolling in an income-driven repayment (IDR) plan can significantly lower your monthly payment, sometimes to as little as $0, depending on your income and family size. IDR plans also offer forgiveness after 20 to 25 years of repayment.
• Another option is federal Direct Loan Consolidation. While it won’t lower your interest rate, it can simplify multiple payments into one and extend your loan term to reduce your monthly burden. If you’re experiencing financial hardship, ask your servicer about deferment or forbearance to pause payments temporarily.
• For private loans, options are more limited. Still, some lenders offer hardship programs, and refinancing could be possible in the future if you improve your credit score or add a cosigner. Consider working with a financial advisor to map out the best course for your situation.

FAQ: Common questions about credit and student loan refinancing

What is the minimum credit score to refinance student loans?

The minimum credit score varies by lender, but it typically ranges from 650 to 680. A few lenders may work with lower scores or no score at all, especially if you have strong income or a cosigner.

What credit score is needed for the best refinance rates?

Aim for a credit score of 740 or higher to get the lowest interest rates. Lenders typically reserve their most competitive offers for borrowers with “very good” or “excellent” credit.

What is the lowest credit score you can have to refinance student loans?

Some lenders may consider borrowers with credit scores as low as 620 to 650, but approval can be difficult. If your score is under 670, you’ll likely need a cosigner or other strong financial credentials to qualify.