Is debt consolidation good for credit score?
Date: Mon, 08/14/2006 - 11:40
It would be the best deal if you can make the payments on your o
It would be the best deal if you can make the payments on your own. After you have paid off the accounts, the creditors will update your accounts with the bureaus and your credit scores will rise higher.
Consolidation program is for those who are unable to pay on their own. They find the interest rates quite higher and cannot afford the late payment fees and other charges. If you tend to use some professional help, consolidation program reduces the interest rates and wipes off the extra charges. This will be beneficial if you enroll in the program.
Consolidation appears in the credit file as long as you are enrolled in the program. Those viewing your credit will see that you used professional help in paying off your debts. You will have to negotiate with the companies for the interest rates in your future credit. This program does not have any negative impact in the long run, but since it's a professional help, it will make its own consequences. Some find this program helpful in their situation.
so would be harder for creditors to offer me credit in the futur
so would be harder for creditors to offer me credit in the future if they see that I had to use professionall to pay of my debts as oppose to me negotiating and paying it off myself?
In most cases, people don't have problems in getting new credit
In most cases, people don't have problems in getting new credit while being in the plan. While most of the creditors appreciate your responsibility in paying off the debts, there are a few who always sound stiff with the consumers. It's their problem, not yours. A majority of the companies will offer new credit if you keep a good payment history and a worthy credit profile. Consolidation helps in paying off the debts. Most people believe, it's not a hurting move.