Home     About Us    Contact Us     Contribute     Privacy
Investing
Stocks
Bonds
Mutual Funds
Biz
Credit
Career
College
Economics
Tax
More
 
 
Marketplace
Related Articles
More
Related Categories
Tip of the Day

Tip of the Day Choose the Right Car Insurance

Choose the Right Car Insurance - Before buying a new car, it is always wise to find out exactly how much coverage you require and only buy enough insurance to...

read entire tip

Related Podcasts
Recently Added
Other Great Sites
 

Credit Rating Debt Consolidation

The intricacies of debt consolidation have been known to confuse people.  Ads tell you that a consolidation loan will help your credit rating.  ‘You should instantly get a credit rating debt consolidation loan to alleviate your debt and improve your ratings,’ is just one way an ad can intrigue you.  However, there is nothing instant about credit rating debt consolidation loans

Time can repair your credit rating.  A debt consolidation loan can over time repair your credit rating.  If you think in one month that your credit rating debt consolidation loan will correct your scores you are not wrong, but you are not right either.  Let’s look at how credit reporting works. 

A company reports either monthly or quarterly to the credit agency.  In this time they will report that you were in good standing, poor standing, or that you had missed payments.  Your score will fluctuate by a few points.  If you pay off a debt your score is helped, but in the same time if you take out a new loan your points will drop.  With the credit rating debt consolidation loan you may find the paid off debt weighs less than the new loan in terms of score thus your score might go down initially. 

Over a period of one year your credit rating debt consolidation will improve.  In two years it can improve more if you do not create more debt and pay on the loan appropriately.  There is a fine line in how a consolidation loan can help your credit rating.  If you do not pay the monthly amount it will of course decline.  It often seems that if you do not pay each month your score deteriorates quickly, but when you pay correctly it takes eons to improve.  The truth is that little things will change your scores.  If you continue to work towards good credit your scores will over the long term increase.  The consolidation loan is meant as an avenue to help your credit issues, but not to make an immediate change in the debt or your scores. 

 

Discuss It!
Most Popular Articles
Most Popular Definitions
 
Daily Definition

Definition of the Day Securities Analyst

Securities Analyst An individual that is able to analyze the market by studying companies and then is able to make recommendations on which securities to buy and sell using this information. This individual usually works for a bank or brokerage and is able to give investors the information that they...

read entire definition

 
 

 

 

Home     About Us    Contact Us     Contribute     Sitemap

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Copyright © 2009 TeenAnalyst.com