Is debt consolidation good or bad for credit rating?

For your 1st query, I would say it depends on what option you choose. The outcome will be different each time you select a loan, a credit card, or any other means to consolidate your debts. However, a debt consolidation loan affects your credit score positively. It's a new line of credit, but by using it you're paying off your old accounts in full, and that's always good for your credit score. However, as you are opting for a new loan, you surely have a hard enquiry appearing in the credit report. Because of that listing your credit score will drop by few points.

And for the 2nd question, a credit rating can be expressed as a letter grade and only shows the creditworthiness of government or a business. On the other hand, the credit score also express the creditworthiness of an individual in a numerical form.

Can we loose the term "consolidation"??? Nobody with bad credit, over extended or without collateral is going to get a loan to consolidate debt. Consumer credit counselling, and all the other places are doing debt management, not consolidation. Most of the people who post to this site are clueless and post incorrect and outdate information.

If you have the resources to pay your debt, then it will be the best option rather than going for debt consolidation. No doubt, debt consolidation will clear all your previous debt but it will become a standing stone in your way for getting future loan.

But in case your resources for payment of your debt is over, then in the absence of any other way, debt consolidation will be the best option.

When you consolidate debt, you're actually extending the period of your loans. This would reflect on your credit report and may put a ding on your credit score. However, once you've repaid your debts in full, your credit score climb up again.

Credit score is the estimate of your creditworthiness that is represented using one numerical value. Whereas, credit rating evaluates your ability to repay the loan on time.