Discover how debt consolidation affects your credit score and learn strategies to minimize any potential impact.
Debt consolidation can simplify your debt payoff efforts and save you interest. But can it hurt your credit score? Learn more.
Updated Jul 11, 2024 ; Written by Amrita Jayakumar ; Edited by Kim Lowe ; Co-written by Jackie Veling
Annual Percentage Rate (APR) · 6.94% - 25.29%* APR with AutoPay ; Loan purpose · Debt consolidation, home improvement, auto financing, medical expenses, and others ; Loan amounts · $5,000 to $100,000
Debt consolidation can hurt your credit in the short term, but there are potential long term gains to consider. Learn more about the good and the bad here.
Do debt consolidation loans hurt your credit? Explore the impact of debt consolidation loans and tips to minimize adverse effects on your credit score.
In this Guide: What Is a Debt Consolidation Loan? · How To Get a Debt Consolidation Loan · Applying For a Debt Consolidation Loan · Pros and Cons of Debt Consolidation Loans · Is a Debt Consolidation Loan Right for You? · The Bottom Line: Qualifying for a Debt Consolidation Loan · FAQs
Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate personal loans to write unbiased product reviews. If you're juggling credit card payments, it can feel tough to stay on track and get ahead. Through credit card debt consolidation, it's possible to simplify the repayment process and merge multiple payments into one, ideally with a better interest rate. You do this by taking out a new loan ...
Debt consolidation may raise your credit scores if you use it to pay off debt. Read to learn how debt consolidation affects credit scores.
Understand, however, that debt settlement can negatively affect your credit score since your... And, in most cases, debt consolidation won't harm your credit much, if at all. In fact, your...