How does debt consolidation affect your credit score and rating?

Public Comments

1. I believe that creditors would look at it in a negative way. They would look at it like you were unable to resolve your own problems.
2. are you talking about a debt consolidation loan or a debt consolidation program? I did a program and know that it did not affect my score at all--you can see this at http://www.myfico.com. there is a section titled--what's not in your score. I found it there that it doesnt affect it. Now, when you close out accounts, that has an impact--not bc of anything negative, but you are taking credit that is available and making it unavailable. My program saved me though--and my score is so much better. I went with Debt Counseling Corporation--they helped me with my budget and helped me lower my interest rates, lower the payment i was making and it was so easy. here is their website: http://www.debtcounselingcorp.org let me know if they help! In addition, I also paid 100% of my debts--not settled. They are not a settlement company at all. that is why my credit is a 741 right now
3. Lets define a consolidation loan. is money borrowed from a lender secured or unsecured. The money from the lender will totally pay your credit cards off 100% Consolidating all of your credit balances. That is what a consolidation loan is. Does not ding your credit. Since I have been in the debt industry I hear people use the word consolidation in reference to: consumer counseling or settlement. : That is not true consolidation. What your really doing is consolidating the payment and not the balance Dings your credit. Which program are you asking about? No matter what anyone tells you, anytime you do any less then pay your creditors 100% your credit will take a hit. For some it is worth it for others it is not. Kourtnie Prosperity Financial