Does consolidating credit card debt hurt credit score dating multiple people once okay
The only reason you get a negative remark on your is if you do something like miss a payment or default on a debt.
With consolidation, you’re still paying your debt off –you’re just doing it in a way that’s more manageable for your budget.
Interest rates do not appear on a credit report; therefore, the interest rates on your credit cards do not affect your credit worthiness or credit scores.
While consolidating those debts into a single payment with a lower interest rate can help you pay off debt faster, you should be wary of companies offering debt consolidation plans.
In turn you would pay off the lump sum likely at a much lower rate than say what your credit card company is offering.
In turn, however, your home could be on the line if you default.
What’s more, at the same time, consolidation allows you to pay off your debt quickly so if everything goes right, the completion of your consolidated debt payoff should end with your credit score in a better place than when you started. Credit utilization ratio is a key determining factor in calculating your .We even share how we make money so you can enjoy our expert advice and researched recommendations with total clarity and confidence.