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 Put At Least 20% Down On A Home

Put At Least 20% Down On A Home - Your home is most likely the biggest purchase you will make in your lifetime, so when planning for the big day,...

read entire tip

Recently Added
Other Great Sites
 

Is Debt Consolidation Bad For Your Credit?

 

Is debt consolidation bad for your credit?  It can be if you aren’t able to meet your new obligations any better than you did the old ones.  However, having said that, you can see results in elevating your credit score if you handle debt consolidation correctly.  So is debt consolidation bad for your credit? Well, it depends on several things.  Your debt counselor will work with the credit card companies to lower your interest rate or set up a repayment plan.  If you pay your bill on time and in the full amount over time your credit score will improve. 

If you have to close some of your accounts to get a better deal you may have your credit score affected or you may not.  The debt counselor would be the person to ask if this part of the solution is good or bad in answer to your question “is debt consolidation bad for your credit”.  If your debt counselor can get the credit card company to take a debt settlement you should ask the same question “is debt consolidation bad for your credit”.  Although this isn’t exactly a debt consolidation loan it could affect your credit score because it might show up as a negative on a credit report. 

Depending on the amount of debt you have it could take you several years to repay the debt.  It could run into a decade or more if you are carrying a very large amount, so using a debt consolidation loan might be a great way to get out of debt and get your credit scores in better shape.  Even if the answer to “is debt consolidation bad for your credit” is yes in the beginning, once you start making on time payments you will see an improvement.

Of course, the best way to improve your credit scores is to get out of debt and pay the large bills like your mortgage in a timely manner.  But, until that becomes possible it could be worth taking a small hit on your credit scores if it happens to reap big rewards in the end. 

 

Discuss It!
Most Popular Articles
Most Popular Definitions
 
Daily Definition

Definition of the Day Law of One Price

Law of One Price - The law of one price relates to the theory that any commodity, asset or security will have the same price in more than one exchange. Should the price differ in anyway, then by what are called arbitrage opportunities an equality will be achieved. Essentially the...

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