Debt consolidation and credit rating

A consolidation program will be put in your credit file for as long as you are enrolled in the program. This does not hurt your credit because your accounts will be paid through the program. Credit scores are hurt when the accounts are delinquent or there is no payment activity.

After using a consolidation program, the delinquent accounts will be brought to the current status and you will be offered easy monthly installments. Your future lenders viewing your file will understand that you have made the previous payments through this program. They will appreciate you for taking the responsibility and not let the accounts go unpaid. This is an important factor in front of lenders before giving new credit.