does this drop your credit score?

Will what drop your credit? debt consolidation? Yes, however if you find a reputable company or not for profit agency, in time, your credit will recover. It will take less time than the 7-10 yrs it would take in the event of a bankruptcy or just simply waiting for the items to drop off your credit report.

Consolidation does lower your credit score. Some of the procedures that accompany consolidation like closing old accounts and applying for new line of credit will definitely hamper your score. It is often seen that most of the people shop for debt consolidation firms that offer lower payments. But they do not realize that taking a loan with lower payment will take a hell lot of long time to pay it off. And at the end they might be paying more than what they would have if they had kept each individual loan. Thus it is very important to find a reliable and reputable consolidation firm that will provide you right guidance to manage your debt.