Do Debt Consolidation Services Affect
The Credit Rating?
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Disclaimer: While we have done our best trying to give you all
information you need in order to consolidate your debt the right way,
it is highly suggested you get seasoned advise coming from debt
consolidation and debt settlement specialists, this is the safest way
to get your finance back in order, plus in the shortest period of
Do Debt Consolidation Services Affect The Credit Rating?
Would you rather pay four different bills per month at $125 each or would you
rather pay one bill of $300? Considering the $300 single bill would yield a monthly
savings of $150, it is no surprise many people would prefer the single monthly bill.
It also goes without saying that paying 15% interest on several credit cards is
much better than paying 22%. This is why so many people look towards a debt
consolidation service for help. Such a service can combine your various monthly
credit card payments into one bill while also lowering monthly minimum payments
and lowering interest rates. Again, the benefits that such consolidation services
offer are certainly helpful.
Yet, some may have worries about working with such companies. Why are they
worried? Mainly, they may have concerns regarding the consolidation service’s
effect on their credit rating. Is there are serious danger that a debt consolidation
service can yield a lowering of someone’s credit rating? The answer depends on a
number of factors. In general, if someone negotiates on your behalf to lower
minimum monthly payments or lower interest rates, this may be reflected on your
credit rating. However, the impact this might have on a credit rating would be far
less significant than it debt settlement was part of the equation. If a debt settlement
has been negotiated then you can expect your credit rating