rasheed wallace intimidating ref - Does consolidating debt hurt your credit score

Credit counseling is the most difficult impact to calculate.According to Fair Isaac & Co., "Whether or not you are participating in a credit counseling of any kind," is not included in a FICO score. If you seek a loan while enrolled, prospective lenders will see you are in a debt management program, and may use that as an excuse to deny your loan or charge you a high interest rate.As the account balance builds, the debt settlement provider negotiates lump-sum settlements to resolve the debt.

But a score may decrease because of less credit utilization.

However, if you increase balances on other accounts or are late on mortgage or vehicle payments, the positives of paying off enrolled accounts will be offset by your negative activities. has not published specific information about the impact of a consolidation loan on consumers’ credit scores. If your consolidation loan is a cash-out refinance, then the net impact on your credit score will be positive because you increase your amount of available credit.

Pick credit counseling if it is imperative for you to keep a high credit score.

If you do not plan to apply for any new lines of credit in the next few years, then the effects of bankruptcy and debt settlement can be reversed by focusing your energy on paying your other accounts on time.

Different debt consolidation strategies result in different impacts on your credit score.

Let us start with the easiest one first — bankruptcy. And while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward — and free. Debt consolidation combines several debts into one, ideally with a lower interest rate. We believe everyone should be able to make financial decisions with confidence. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. " Debt consolidation can help or hurt your credit, depending on how you do it and what you do next.FICO scores are used by virtually all mortgage lenders, credit card issuers, and vehicle finance companies.Vantage Score is a new company, and is used more often by Web sites and others offering free credit scores.However, if your consolidation loan is a personal loan, then your available credit is increased, but not as dramatically as a cash-out refinance.

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