subject: Will Debt Consolidation Affect My Credit? Know What To Do To Improve Your Rating [print this page] Will Debt Consolidation Affect My Credit? Know What To Do To Improve Your Rating
Some individuals in crushing debt remain paralyzed in their situation because they are afraid the debt consolidation will negatively affect their credit score.
Thus they struggle each month to make minimum monthly payments or they suffer silently as they accrue late fines on a regular basis. While consolidation may lower your credit score for a moment due to the instantaneous closing of your multiple credit accounts, you can swiftly recover and even surpass your damaged credit score in a very short period if you stick to three simple principles.
Aurora Lillo Editor of the "Best Debt Consolidation Services" website -- http://www.BestDebtConsolidationServices.net -- pointed out;
"...First, you should act fast in choosing consolidation instead of dragging your feet for several months before taking the plunge. Second, you should stay consistent while repaying your consolidation loan in order to rebuild your credit history. Third, you should make your loan as short-term as possible, to avoid higher interest rates and to signal reliability to new prospective credit providers..."
Act Fast
The time is now to move on eradicating your crushing debt. Pretending there is no problem does nothing but exacerbate the situation, which can cause your credit score to plummet in a short period. Instead of racking up non-payment dings on your credit history, applying for a consolidation loan can allow you to pay off all of your creditors in one fell swoop and stop the downward spiral of your credit score. While a number of closed accounts may lower your credit score temporarily, the damage is not permanent and it is infinitely better than accruing negative marks every month for late or non-payments.
Stay Consistent
Once you have paid off all of your creditors, you will need to make sure that you pay off you consolidation loan via monthly payments that you make like clockwork. Every time you make a payment on time, it is a positive mark on your credit report. Over the course of just a few months with faithful payments, you should begin to see your credit score recover and improve. If you miss payments, however, it will not look good on your credit report.
Think Short-Term
"...While long-term loans allow you to make lower monthly payments, they can cost you more in terms of interest rates. They can also signal a certain degree of irresponsibility to other creditors that may be considering extending new lines of credit to you. You would be wise to create a repayment plan that is as short-term in nature as possible, yet realistically factors in your current income and budget..." added A. Lillo.
Further information about trusted and reputable companies for debt consolidation by visiting; http://www.BestDebtConsolidationServices.net
