Does consolidating credit card debt hurt credit score

Consolidating debt can help you pay off debt faster, lower the amount you must pay back or lower your monthly payments by stretching out the amount of time it takes to pay your debt.However, consolidating debt can hurt your credit score.This gets reported on your credit report and the potential creditors or lenders start viewing such people as 'risky' borrowers.

does consolidating credit card debt hurt credit score-85

Not only does that simplify your debt payments, it can also help you save money.The best way to consolidate credit card debt — and whether consolidation will work for you at all — depends on your situation, so you might want to consult a non-profit credit counselor about your best options.The following five tips can help you figure out which credit card consolidation strategy suits you best.Hi Jayben, Debt consolidation is good idea, if you wish to lower to interest rate and get the extra fees and charges waived off.However, I don't think you can consolidate the loans if your student loan is federally granted. Yes, debt consolidation hurts your credit score, since it indicates that you are unable to pay off your bill normally.

Does consolidating credit card debt hurt credit score