Credit Rating

Enrolling in a debt consolidation program won't have a negative affect on your credit. However, while you're in the program, you may have to be delinquent on your payments. This delinquency will lower your credit score by few points. However, as you'll be paying off the debts, with time, your scores will increase.

Enrolling in as debt consolidation program will have a major hit on your credit. You are not paying as agreed so your scores will tank.

Hi!
Welcome to the forums!
Anna is right. As far as I know, debt consolidation program does not have a negative impact on credit score. If the consumer can make regular payments on the debts after consolidating the multiple bills, then it will help to improve your credit score with time.

Incorrect! A debt management program (which is what I think your'e referring to) will definitely have a negative impact on your credit score. Getting on a hardship plan is a better option, if your creditors will allow it. If you're actually talking about getting a consolidation loan to pay off your other debts, that will likely have no effect on your credit score.

If you want to know whether or not enrolling in debt consolidation program hampers credit score, then I will say it won't. This is a personal experience I'm sharing with you. However, my debt consolidation company did inform me that if I go delinquent on my new payments or if I'm late on my new payments, then it will definitely affect my credit scores in a major way. I made sure I paid off my debts on time as per my new payment plan when I was in the consolidation program. Finally, I was able to consolidate all my debts without any major ding in my credit report :-) Yaaayyyyy :-)