answersLogoWhite

0


Best Answer

Hello,

I just answered the same question few seconds ago.

Please read it, http://wiki.answers.com/Q/How_does_debt_consolidation_affect_getting_a_mortgage

User Avatar

Wiki User

15y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: Does debt consolidation effect my credit and score?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Continue Learning about Finance

Does debt consolidation effect credit and credit score?

When you consolidate your debt, you might see a slight dip in your credit score, but that should only be temporary. If anything, your score will improve in the long term as long as you keep up with your payments and don't apply for other loans or lines of credit in the meantime. It's also best to keep your credit utilization ratio low, or stop using your cards altogether if they're the source of your debt.


Does debit consolidation hurt your credit?

{| |- | There is a chance that using debt consolidation services might affect your credit. Some debt management programs, like credit counseling, show up on your credit report. Some solutions, like debt settlement, don't show up on your credit report, but by definition cause late payments. Most debt consolidation services are there to help you get out of debt, not to sustain your credit report or credit score, so you should priorotize what you really want in seeking debt consolidation help. |}


Does debt consolidation help credit score?

If you are struggling with overwhelming debt and have too many bills and not enough money to pay them all then you should always opt for consolidation Debt consolidation lowers your monthly payments and helps you get your finances under control....!"


Where can one find more information about debt consolidation rates?

Consolidating your debt with a personal loan can help — and hurt — your credit score. When you use the loan to pay off your credit cards, you lower your credit utilization, which measures how much of your credit limit is tied up. Lowering your credit utilization can bump your credit debtredemption. On the other hand, applying for a loan requires a hard credit check, which can temporarily ding your credit score. And if you turn around and rack up new credit card debt, your credit score will suffer.


What is the average minimum credit score required for obtaining a consolidation loan?

Depending on what lender you go to, you'll probably need a credit score of at least 540 if not higher. If debt consolidation loans are not a viable option for you, you may want to look into credit counseling services who can negotiate lower interest rates for you and can consolidate your debt.

Related questions

Where can I get debt consolidation?

You can get credit score advice and debt consolidation information from your banker. They can order a credit bureau score for you and tell you what your score is, how to clean up your credit and perhaps lend you funds to consolidate and pay down the debt faster.


can someone give me credit score advice on consolidation debt?

There are many places online where you can get advice on consolidation debt. For more information, see loans.denturesky.com/where-can-i-get-financial-consultation-or-adv. Also you can order your credit score from equifax.com.


Does debt consolidation effect credit and credit score?

When you consolidate your debt, you might see a slight dip in your credit score, but that should only be temporary. If anything, your score will improve in the long term as long as you keep up with your payments and don't apply for other loans or lines of credit in the meantime. It's also best to keep your credit utilization ratio low, or stop using your cards altogether if they're the source of your debt.


Does debit consolidation hurt your credit?

{| |- | There is a chance that using debt consolidation services might affect your credit. Some debt management programs, like credit counseling, show up on your credit report. Some solutions, like debt settlement, don't show up on your credit report, but by definition cause late payments. Most debt consolidation services are there to help you get out of debt, not to sustain your credit report or credit score, so you should priorotize what you really want in seeking debt consolidation help. |}


Does consolidating debt loan help improve your credit score?

A debt consolidation does absolutely nothing to improve your credit score. Consolidating debt causes you to simply borrow more money to pay off old debts.


How can debt consolidation help me and my family?

It can give you a better credit score, allowing you get a nice house, and car.


Does debt consolidation help credit score?

If you are struggling with overwhelming debt and have too many bills and not enough money to pay them all then you should always opt for consolidation Debt consolidation lowers your monthly payments and helps you get your finances under control....!"


Where can one find more information about debt consolidation rates?

Consolidating your debt with a personal loan can help — and hurt — your credit score. When you use the loan to pay off your credit cards, you lower your credit utilization, which measures how much of your credit limit is tied up. Lowering your credit utilization can bump your credit debtredemption. On the other hand, applying for a loan requires a hard credit check, which can temporarily ding your credit score. And if you turn around and rack up new credit card debt, your credit score will suffer.


What is the average minimum credit score required for obtaining a consolidation loan?

Depending on what lender you go to, you'll probably need a credit score of at least 540 if not higher. If debt consolidation loans are not a viable option for you, you may want to look into credit counseling services who can negotiate lower interest rates for you and can consolidate your debt.


Can one use debt consolidation to receive a loan if one has a bad credit score?

There are some financial institutions that will loan money to those with a bad credit score for debt consolidation. To get the best rates and have the best chance of success, it would be best to put something valuable up for collateral.


Credit conseling and debt consolidation or debt management?

If you try to build you credit reputation, then, low interest debt consolidation loan is just what you need. Why? Well, applying to debt consolidation companies, the whole amount of your debt will be repaid at once, hence, it will have a really good impact on your credit score as it will be definitely improved. As a result, you will be able not only to get desired debt reliefwith least efforts involved, but to face a number of benefits with one service.


What kind of credit score do I need to secure a debt loan?

Most generally, debt consolidation loans are for people who have no so good credit. You could check out www.lendersmark.com for more information.....