subject: What Do Debt Consolidation Agencies Do To The Score On Your Credit? [print this page] When you are working to fix your debt problems, you should also be concerned about your credit score. Both are essential and finding the right consolidation agency is the key to getting out of debt, without damaging your credit. Debt consolidation agencies specialize in getting you out of debt using low-interest consolidation loans. They may also offer other services that can help get you out of debt and keep your credit clean. Paula de la Torre Editor of the "Best Debt Consolidation Services" website -- http://www.BestDebtConsolidationServices.net -- pointed out; Consolidation services provide low interest rate loans that are used to pay off your high interest rate credit card debts. Some may include negotiation and settlement to try to reduce the amount of the debts that have to be covered by the consolidation loan If the debt goes into negotiation, the negotiators try to get bad credit marks removed from your record. Even if past negative credit is not removed, once the debt is paid, the creditors will not be able to give you further negative marks. Since the debt is paid, it also shows up as successful payment and that can help offset previous bad marks on your credit. Another advantage of using consolidation is that it reduces your debt ratio. The lower your debt ratio, the more likely it is that you will qualify for future lines of credit. Your debt ratio is a comparison between the amount of debt you pay out every month, to your amount of income. The lower the amount of debt, the easier it is for you to apply for credit when you need it. The lower the debt ratio, the better your credit is viewed. Consolidation loans have one other benefit, since the monthly payments are lower, you can apply a portion of that savings to your consolidation loan. This has two affects. It reduces the amount of time that it takes to pay off the loan, it also reduces the total cost of the loan. Once the debt consolidation is paid off, your credit score shows another line of credit successfully paid. This helps show financial responsibility, which is reflected in your credit score P. de la torre added. With all of the advantages of debt consolidation, isnt it time that you looked into it? Consolidation loans offer lower monthly payments, quicker payoffs of debts, and the chance to repair your credit. There is no other service like it. When combined with negotiation and settlement, it is an indispensable tool against debt. Further information about trusted and reputable companies for debt consolidation by visiting; http://www.BestDebtConsolidationServices.net
What Do Debt Consolidation Agencies Do To The Score On Your Credit?
