Is It True You Cant Get Any Credit Until Debt Consolidation Is Over?

Author: Hector Milla

Author: Hector Milla

This is one of many common misconceptions about debt consolidation. In fact, this is very far from the truth. There is no law or anything else in a debt consolidation that prevents you from getting credit. Thats the true. Aurora Lillo Editor of the "Best Debt Consolidation Services" website -- http://www.BestDebtConsolidationServices.net -- pointed out; Also, although there are certain negative effects on your credit from this process, they are so minimal that it is highly unlikely that debt consolidation will lower your credit score enough to prevent you from being able to get loans. Debt consolidation is an excellent process for almost anybody who has poor credit for almost any reason Many think that it shows weakness, and an inability to pay off your debts the way they are, but this could not be farther from the truth. Rather, many future creditors see this as a positive thing, that you were able to take control of your debt, and that you did something about it. Furthermore, it helps your credit in that you are able to pay off your debt. This is an enormous part of your credit score, and just being able to pay off the debt does a ton to help it. Finally, it even helps your credit score in that you will just have fewer accounts open. All of the major credit agencies lower your credit score for every line of credit that you have open, and of course closing all of those accounts is the main part of consolidation. You only have to have a single line of credit open. There really is only a single part of debt consolidation that will lower your credit score. This is the part that is best for you, as a debtor: that the consolidation agency will try to bargain with your creditors so that you dont have to pay as much. These debts will show up on your credit report as settled, which indicates to future lenders that you were unable to pay the entire debt, and will hurt your credit score. So, in essence, the answer is a resounding no. This is not true, and the truth is far more complicated. If you are able to show a solid credit foundation, and that you are a responsible buyer, there is no reason at all why a creditor would refuse to lend to you for the period of time that you are in a consolidation program added A. Lillo. Further information about trusted and reputable companies for debt consolidation by visiting; http://www.BestDebtConsolidationServices.netAbout the Author:

Hector Milla runs his corporate website at http://www.OpsRegs.com where you can see all his articles and press releases.

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