Articles Comments

Debt Relief – Insolvency – Bankruptcy Information » Debt Consolidation and Refinancing » Will applying for (and receiving) a debt-consolidation loan damage my credit?

Will applying for (and receiving) a debt-consolidation loan damage my credit?

I have numerous debts (car payments, student loans, a few credit cards, and a signifcant personal debt owed to a friend) that I’d like to roll into one monthly payment (which would hopefully be smaller than the amount I currently pay for each one as a separate monthly bill).

Some people have advised me to apply for a debt-consolidation loan. My question is, will doing so affect my credit negatively? Do they even include student loans in debt-consolidation?


  1. What is the lowest credit score I can have to get a student debt consolidation loan? i have a lot of student loan debt and want to consolidate. however, i’m sure that because it is a...

  2. Student loan consolidation and credit cards? I graduated a few months ago from college and am starting a new job in a few weeks. I’ve been...

  3. Federal Loan Debt Consolidation : Student Loan Debt Consolidation Student loan debt consolidation – Consolidate your student loans or college loans to lower your monthly payment. Student loan...

  4. How can I get a debt consolidation loan? Everybody’s turning my husband and I down for too much credit!? My husband and I are trying to straighten out our finances because we have a lot of debt (credit cards...

  5. Can I get a debt consolidation loan with bad credit? I would like to get a debt consolidation loan for my outstanding debt from closed credit cards, old utility bills,...

Written by

Filed under: Debt Consolidation and Refinancing · Tags: , , , , ,

2 Responses to "Will applying for (and receiving) a debt-consolidation loan damage my credit?"

  1. Ed Atun says:
    A debt-consolidation loan is just a fancy word for a “new” loan at the same banks you borrowed from before. It doesn’t hurt your credit because the amount owed has not increased.
    A debt-consolidation “service” tries to charge you $1,000 to get lenders to reduce your debts. You make one payment each month to the “service” and they pay everyone you owe. This is an area of business which is 99% scammers so you need to avoid them.
  2. Raj A says:
    Consolidating high interest debts into one lower interest account can be a good way to take charge of out of control debts. Just make sure that you watch out for a few common pitfalls that can damage your credit score along the way. Please visit at to find more details.

Leave a Reply

Connect with Facebook


You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Not finding what you're looking for?
Do a custom search of our entire site:

Get Adobe Flash player