Consolidating debt hurt credit

While some may believe that deb consolidation is something to avoid, it is actually very good news for your credit score.

In turn, however, your home could be on the line if you default.In fact, to credit agencies, paying off several accounts with the consolidation loan makes it seem as if you have paid off accounts.The debt consolidation loan appears as a new credit account, but accounts paid in full are always positive.Debt consolidation may be an option you’re considering in order to regain some solid footing, but it’s important to note how this move can impact your credit worthiness and score.Will it lend a helping hand or kick you when you’re down? While the basic principle behind debt consolidation – taking debts and combining them into one, hopefully more manageable debt – is essentially all the same, there are different ways to go about it.

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