Does consolidating accounts hurt fico score

Debt consolidation loans can be bad for credit if your revolving balances quickly return because of undisciplined spending.Settlement programs and debt management plans can also hurt qualifications – but could result in longer-lasting relief.However, these instances are rare, occur after a time delay, and depend on the spending choices you make afterward. This includes people dealing with garnishment or late payments.Those that are eligible must pay off credit cards and keep the balances low over time.

It all depends on how well you're handling your debt, and how you chose to bring your debt repayments into one affordable monthly payment.Loan consolidation takes your existing debts and turns them into a single loan with a lower overall interest rate.In theory, you'll have a lower monthly repayment, which means you're less likely to default on your loan.She holds a Bachelor of Laws from the University of Birmingham and a Masters in International Law from the University of East London.If you are seeking lower monthly payments, you may be wondering how debt consolidation loans affect credit scores.

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