Consolidation and credit scores

Hi mazdaspeed

Welcome to the forums.

debt consolidation does not harm your credit ratings. When you are using a debt management plan to pay off the past debt, it is your move to improving the credit file. After enrolling in the debt management program, a comment will appear in your credit report stating that you are paying your accounts through the consolidation company. It will remain till the account is paid in full. This comment does not hurt your credit in the least.

Your credit scores are constantly revised through the payments that you make towards your debt accounts. If payments have not been regular or the accounts are charged off, credit scores are adversely lowered. But scores get enhanced with the timely payments and if the accounts remain current.

It is the responsibility of the debt consolidation company to make regular payments to your creditors. Do some researches before you choose the consolidation company as your accounts will be handled by them thereafter.

Since you are looking for a new home, the three digit credit score is the most important factor to analyze your financial worthiness. Based on these credit score, loans or credit can be acquired from the creditors and other lending agencies. When the credit score is evaluated, extensive research is conducted on the following areas of your credit report.

• Your payment history is analyzed.
  
  
• The amount that you owe is taken into consideration.
  
  
• Length of your credit history is determined.
  
  
• They look out for the types of credit that you have used so far.
  
  
• They will look into your new credit.
  

Improve the following avenues before you approach your lenders. Lenders freely advance credit and other proposals to those who have high credit scores. A person with high credit scores will catch the lowest rate of interest and will be paying less in interests in comparison to one who has low scores.

Regards
Roxette