Consolidating credit card debt affect credit score girls rawalpindi dating
The older accounts carry more of your credit history.
Kristie Lorette started writing professionally in 1996.
Credit reporting agencies issue credit scores to all consumers based on your credit history.
Lending institutions use these scores to determine your level of risk on a loan or line of credit.
The obvious benefit of a debt consolidation loan is one single monthly payment, instead of scrambling to pay several creditors each month.
With consolidation, you’re still paying your debt off –you’re just doing it in a way that’s more manageable for your budget.
So unless you choose an option that’s not right for your situation, there’s nothing negative that would appear on your credit report.
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.
You can use do-it-yourself debt consolidation methods or you can get assisted consolidation with a debt management program through a credit counseling agency if you don’t have credit good enough to do DIY.