Debt consolidation and your credit score
Date: Tue, 10/10/2006 - 08:15
What will happen to your credit if you consolidate? We are looking to buy a new house in the very near future will consolidating hinder that?
Consolidating the debts under one payment plan will be good for
Consolidating the debts under one payment plan will be good for your credit in the long run. You are using this program because you want to make the repayment process easier. Consolidation will appear in your credit as long as you are enrolled in the plan. Once it is over, the program will be taken off from your file. Those viewing your file during this period will know that your accounts are not in defaults and they are getting paid through the program.
When all the debts are paid off, the credit scores will rise to the maximum and this will be good when you will be visiting your lenders for purchasing a new house.
