Does consolidating credit card debt hurt your credit

Posted by / 11-Apr-2020 15:38

Those are the two biggest factors in determining your credit score.

So many times, your score goes up as your debt goes down.

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But really, if your credit is that high you’d be better off consolidating on your own with a debt consolidation loan or credit card balance transfer. Any time you miss a payment, you hurt your credit score.

So if you consolidate your debt by transferring credit card balances or by taking out a personal unsecured consolidation loan, you shouldn’t have any credit damage unless you miss a payment.

When you start a debt management program, you’re adjusting the payment schedule for your credit cards.

So it’s important to note that your creditors may report that you’ve missed a payment on your credit reports in the first month your plan starts.

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Plus, some lenders will send payment directly to your creditors, so you won’t be tempted to use the loan funds for something else.

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