What is the impact of debt consolidation on your credit score?

In the last few years, debt consolidation has become one of the most common practices. among many debtors in the USA to get rid of their debts. In the debt consolidation, the lender will merge all your debts into a single debt at lowest interest rates, therefore, you don't need to pay multiple monthly installments; rather, you only need to pay a single installment for a single debt, and you'll get rid of all your multiple debts at once.

Does it affect your credit score?

One of the biggest questions that many people ask is if debt consolidation loans affect your credit score?

The answer is yes it affects the credit school but for good. Unlike debt settlement, debt consolidation has a positive impact on your credit school and usually your credit score improves.

Once you opted for debt consolidation loan at lowest interest rates. All your other debts will get paid off with this loan. Hence, your credit school will improve as you have only one active loan instead of many.

Many debtors use debt consolidation not only to consolidate their multiple loans, but they also use it to improve their credit score, so they can get new credit in future easily if required.

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