Does consolidation affect credit rating even if it offers debt relief?

Hi Travis,
The impact on your credit score depends on the type of program you are choosing, as Debt Consolidation means various debt relief options.

The most commonly used is Debt Consolidation Loan. Generally, these loans don't have any negative impact on the credit score as they don't increase the loan amount.

If you opt for Consumer Credit Counseling Service, then the CCCS companies will negotiate with your creditors and take care of the monthly payments. The FICO score won't be affected as long as the CCCS covers the minimum payment and does it on time.

Debt Consolidation also includes Debt Settlement Programs, and it does have some kind of negative impact on your credit score.