Credit Score Rebounding
 
Lots of people get a debt consolidation because they don’t know what to do with their debt. They are often behind on their payments, and in some cases very close to bankruptcy. A debt consolidation can often hold that off as they simply needed to have their debt restructured instead of trying to pay off all of the debts at once. A debt consolidation will take all of your bills and put them into one larger loan. You use the money from the debt consolidation to pay the other bills off, and then that leaves you with only one bill – the debt consolidation loan payment.
 
This works wonders for people knowing that their debt is going to be more easily managed, and that they don’t have to worry about a bunch of different bills to pay. So people get these debt consolidation loans and they start paying on them. The goal is to get debt free, but it is also to increase your credit score so that you are eligible for lower interest rates, etc. on your other loans.
 
But how long does it actually take to increase your credit score? It really depends on the situation. The credit companies look at the form and the level of the debt consolidation. Are you simply lumping it all into one bill and then paying it back – for this will help your credit score. Did you get some of the loan forgiven so that your debt consolidation is in conjunction with a debt settlement? This will hurt your credit. Not paying the bill on time will hurt you, and if you miss any payments your credit score will suffer for it.

 

 

Back to News Updates