Consolidating debt hurt credit score

Posted by / 21-Jan-2017 11:10

Consolidating debt involves combining multiple debts into one debt.

This can be done using balance transfers, personal loans, second mortgages, home equity loans or through a special program offered for student loan debt consolidation.

Unfortunately consolidating debt does hurt a borrower’s credit score.

But credit scores can always be corrected over time, and consolidating debt may be necessary to ensure a healthy financial future.

An error on any of your credit reports could prevent you from qualifying for the debt consolidation help you need, so .Today, a majority of the home equity lines he approves as owner of Priority Plus Lending will be used to pay off Americans' credit card debts.Nor is his route the only one to spring up in a capitalistic society: Where there's a need, there's a buck to be made, even among the broke.For example, imagine a borrower who has one personal loan of ,000 for five years at a 10 percent interest rate (loan A).That same borrower also has a ,000 for five years at a 12 percent interest rate (loan B).

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If you’re struggling to make the minimum payments on your debt, missing due dates and not making any substantial headway in the process, you’re credit score likely already mirrors your situation.