subject: How Does Debt Consolidation Affect Your Credit Rating? [print this page] Many consumers are finally beginning to realize how important it is to maintain a strong credit rating and this task can be virtually impossible when struggling with too many financial obligations. As individuals look for various ways to deal with their own unique situations, one of the most common concerns is that debt consolidation may adversely affect the person's credit rating. It is necessary to truly understand what such a process will actually do before deciding to pursue other options. Few people realize that too many credit cards and too many open accounts often cause significant damage to a credit score. Even individuals that have been able to maintain a good payment history will find that too many financial obligations will lower a score substantially. Debt consolidation can help eliminate the unnecessary accounts and may actually increase a credit score as a result. Get a Free Debt Consolidation Quote - Click Here! The length of time that an account is open does help add to a credit score, so closing an account that has been open for a long time may actually lower a person's financial standing. Many people find that the score drop isn't often too much and it is often very temporary. A professional advisor can help ensure that certain accounts are left open and as a result this minor score drop can often be completely avoided entirely. Most consumers that have a large debt load are struggling to keep up and are closer and closer to a missed or late payment. One single slip up can severely damage an individual's credit report and nobody wants to live so close to danger. While debt consolidation may initially cause a reduction in credit score, the credit rating will drastically improve as the total amount of money owed decreases. The initial impact is far less damaging than one single missed payment or delinquency. Debt consolidation may not be right for everyone, but the simple truth is that the majority of individuals can benefit from it and may be able to achieve financial freedom with its assistance. Any negative impact on a credit rating is often temporary and the credit score can rebound much quicker and will soon be stronger than ever. The most important thing is to completely understand the process and be sure to know all associated fees, terms, and conditions. Dealing with a seemingly unmanageable level of debt may not be as hard as most people think. Click Here to request a Free Quote Online and see exactly which Free Debt Consolidation Programs will benefit you.
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How Does Debt Consolidation Affect Your Credit Rating?
