| Author |
Message |
|
Options 
Bookmark online
|
jayben
Joined: 14 Oct 2009
jayben's page
Posts: 9
315 Magic Points
|
|
Subject: Does Consolidating Credit Hurt Your Credit Score?
|
|
|
Mon Oct 19, 2009 8:48 pm
|
|
|
| i have quite a bit of debt from an unsecured personal loanand student loans i took out and was wondering that if i consolidated them if that would hurt my credit score? |
|
|
Justin
Joined: 17 Jul 2006
Justin's page
Posts: 1298
28935 Magic Points
|
|
|
|
|
Tue Oct 20, 2009 6:34 am
|
|
|
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. If it is a private loan, you can do it. Yes, debt consolidation hurts your credit score, since it indicates that you are unable to pay off your bill normally. This gets reported on your credit report and the potential creditors or lenders start viewing such people as 'risky' borrowers. As far as the score is concerned, it will take a hit, but exactly by how many points, it is impossible to say.
_________________
All the Best 
Justin |
|
|
SIA
Joined: 18 Oct 2009
SIA's page
Posts: 57
46 Magic Points
|
|
|
|
|
Fri Oct 23, 2009 5:34 pm
|
|
|
| If you file for Chapter 13 bankruptcy, it will ruin your credit. The notation will stay on your credit report for 7 years and on your public records for 20 |
|
|
jayben
Joined: 14 Oct 2009
jayben's page
Posts: 9
315 Magic Points
|
|
Subject: thanks
|
|
|
Fri Oct 23, 2009 8:13 pm
|
|
|
justin and SIA...thanks for your comments. they've really helped. i guess i'll have to continue to get some advice to see what the best route will be for me.
but thanks again |
|
|
lisaroberts2384
Guest
|
|
Subject: Re: Debt management
|
|
|
Wed Jan 20, 2010 7:12 am
|
|
|
Hi Jayben.
Your credit card score will not get affected by using a debt consolidation program. Credit bureaus will make a notation on your credit report but this will not affect the credit score. The problem, however, lies in how your future creditors may view such a notation. Some may take it as a positive thing showing that you are taking responsibility for your financial situation. Some view it negatively. This notation is removed once you finish or terminate the debt consolidation program. Debt consolidation is a good idea especially since a good agency may be able to get your interest rates reduced, waive or reduce late fees, financial charges, etc. This results in you paying less money to your creditors in the long run,and, in a quicker amount of time. But make sure you choose a reputable Debt Consolidation agency – a non-profit agency which has third-party accreditation and has a proven track record. Check for a rating with the BBB. The best rating is A+. You should deal only with certified professional credit counselors. |
|
|
cinnamngrl
Joined: 01 Nov 2008
cinnamngrl's page
Posts: 992
9695 Magic Points
|
|
|
Aaron
Guest
|
|
Subject: Consolidation and credit score
|
|
|
Fri Jan 22, 2010 9:46 am
|
|
|
Hello jayben,
I am afraid that debt consolidation does hit credit score. This is because by the time you start settling your dues, you may have had a no. of late payments recorded on your credit report.
However there are ways to boost the score. Firstly check the status of your accounts on your credit report. Once you settle the dues after consolidation, your report should reflect "Satisfied" or "Settled" instead of unpaid. Secondly negotiate your account status with the creditors and go for a pay for delete agreement with them. Then ask them to update your account status as "Paid in full" or "Paid as agreed". Thirdly keep some credit accounts open. And yes last but not the least get a secured credit card.
And one more thing is that you won’t be able to consolidate the student loan.
Regards,
Aaron |
|
|
cinnamngrl
Joined: 01 Nov 2008
cinnamngrl's page
Posts: 992
9695 Magic Points
|
|
|
|
|
Fri Jan 22, 2010 10:47 am
|
|
|
one issue with this kind of credit counseling is that your first payments go toward dues rather than your bills. Leaving your bills unpaid this way can cause serious if temporary problems. You should consider whether you can negotiate settlements on your own and save the fees.
Also, while student loans cannot be settled in this way, there are many ways of deferring payments. There is also a program where if you work in public service for 10 years, the loans can be forgiven.
_________________
CMRRR Templates
How to PFD, OPT-out, Complain, etc
All credit articles at EHOW |
|
|
Sharon
Guest
|
|
Subject: Consolidation and credit score
|
|
|
Fri Jan 22, 2010 11:42 am
|
|
|
Hi jayben,
Attempting a debt consolidation means to get together all your loans to pay off the greater debt. In general it may not affect your credit score in any major way. But the credit score also depends on how you deal with your current financial situation.
After you go for the debt consolidation program make sure that you use your older accounts. Also check the status of your accounts on your credit report. Once you settle the dues after consolidation, your report should reflect "Satisfied" or "Settled" instead of unpaid. Then negotiate your account status with the creditors and go for a pay for delete agreement with them. Then ask them to update your account status as "Paid in full" or "Paid as agreed". Also make sure that you get a secured credit card.
And one more thing is that you won’t be able to consolidate the student loan.
Regards,
Sharon |
|
|
equistar
Joined: 01 Apr 2010
equistar's page
Posts: 9
101 Magic Points
|
|
|
|
|
Thu Apr 01, 2010 4:49 pm
|
|
|
Debt consolidation will not hurt your credit score and is also a good idea to think for then just going for chapter 7 or 13 bankruptcy. I personally suggest you to go for it. But Debt consolidation is also a loan to pay off others so try getting out of it fast.
_________________
debt solutions California |
|
|
