Consolidating high-interest credit card debt at a lower interest rate can save you hundreds or even thousands of dollars. But if youre considering this strategy, youve probably wondered, does debt consolidation hurt your credit or help it?
Lets look at how different approaches to debt consolidation might affect your credit score and some best practices for protecting your credit.
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3 ways debt consolidation helps your credit score
A debt consolidation loan can help your credit score in three ways:
- Reducing the overall amount of debt you owe, assuming you dont go out and run up more debt on your credit cards
- Lowering your credit utilization ratio, which is the percentage of your available credit limit youre acc…
Read the full article at: https://www.credible.com/blog/personal-loan/does-debt-consolidation-hurt-credit/