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