Does consolidating debt affect your credit score

Nevertheless, this only appears in the first month, when the plan is implemented.Otherwise, payments should be made on time, adhering to the new schedule.As they had low credit scores, to begin with, most individuals will see their scores grow.So, the first month’s worth of “missed” payments is, in reality, very minimal compared to all the payments you would have missed, or been late on while you were struggling to pay off your debt.

Therefore, if you obtain debt consolidation by moving your credit card balances or using an unsecured personal consolidation loan, your credit score should not be affected negatively, unless there were missed payments involved.Here’s how consolidation can hurt, or help, your credit score.When you’re striving to pay off debt, consolidating multiple loans and credit cards into one account, can be an excellent strategy.As your debt continues to pile up, it’s easy to feel as though your options are limited.