Consolidating debt hurt your credit
While getting out of debt can be life-changing, you need to consider how a debt consolidation loan will affect your credit rating. We’ll go over all of these questions below so that you can be as equipped as possible to finally tackle your debts.
The debt consolidation loan is probably the most popular form of debt consolidation.
This will be used to calculate how much you would end up paying when staying current on your accounts.
So if you’re struggling right now, would it make sense to lock yourself into a 5 year plan when there are shorter term options?
Consolidating your maxed out credit cards with an installment loan (a debt consolidation loan) will more than likely help your credit score.
Having a variety of different types of credit accounts will help improve your credit score and paying off credit card debt is always a good idea.
It’s a six in one hand, and half a dozen in the other answer, because you may feel that by consolidating the debt together it’s a benefit because you’re just making one monthly payment but the fact is you are still carrying the debt load.
So technically, your credit may not be negatively affected after you consolidate your debt, but it’s also not improving.