Does consolidating your credit cards ruin your credit
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So unless you choose an option that’s not right for your situation, there’s nothing negative that would appear on your credit report.
What’s more, at the same time, consolidation allows you to pay off your debt quickly so if everything goes right, the completion of your consolidated debt payoff should end with your credit score in a better place than when you started. Credit utilization ratio is a key determining factor in calculating your .
Debt consolidation can help or hurt your credit, depending on how you do it and what you do next.
Debt consolidation combines several debts into one, ideally with a lower interest rate.When you’re ready to give debt consolidation serious consideration, be sure check out Ready For Zero’s debt consolidation tool. Debt consolidation through a debt relief company or bank usually entails this third party negotiating for lower payments or rates on your behalf, sometimes capitalizing on relationships they have already established with your creditor.