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Debt Relief – Insolvency – Bankruptcy Information » Debt Consolidation and Refinancing » how does debt consolidation effect your credit score?

how does debt consolidation effect your credit score?

if I have a consolidation company handle my debt so I only have one payment how will that effect my score?


  1. Going with a credit card consolidation will it effect my credit score ? I have dug myself into $7500 worth of credit card debt and the only way out is credit card consolidation...

  2. POOR CREDIT — I’m in debt consolidation with a 400 credit score — How can I finance a car, I have lots of $ I am going througt debt consolidation and my credit score dropped, big time. I make plenty of cash to get...

  3. Does debt consolidation work and help improve your credit score? I am really bad with paying bills and my credit has taken a hit these past couple years. I make...

  4. Debt consolidation through a credit union? I’ve got two credit cards that are maxed out and can’t seem to make ANY progress by paying the minimum...

  5. if i enroll in the debt relief program will it effect my credit? a co worker is way over her head in debt and a finance company recently offered her the debt relief...

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2 Responses to "how does debt consolidation effect your credit score?"

  1. CatDad says:
    STAY AWAY from any “debt consolidation” program that involves debt settlement. Debt settlement is a risky tactic where you pay a monthly fee to a debt consolidator….this entire fee goes towards building a settlement account and to the consolidator’s fees to “settle” your accounts in the future. Your credit card companies will deliberately not be paid so that all the accounts will default/charge-off so that they can attempt settlements at around 50%. If you are current on your accounts, this process will ruin your credit rating for sure. Debt settlement is like a roll off the dice with your finances…You can never predict how your creditors will respond to the deliberate defaulting of your accounts…they might settle at 50%…or they might serve you a summons, take you to court…and if they win, you could be looking at wage garnishment.
  2. Sara J says:
    Debt consolidation has minimal effect on 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 prioritize what you really want in seeking debt consolidation help.

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