subject: Is Using a Debt Consolidation Service a Good Way to Repair Credit Score? [print this page] Author: Hector Milla Author: Hector Milla
Your credit rating is based on many factors, and they are all factors that you have some level of control over. When you open up multiple high interest rate credit card accounts, you are lowering your credit score. When you use those accounts instead of using cash, you are lowering your credit score. Aurora Lillo Editor of the "Best Debt Consolidation Services" website -- http://www.FreeDebtConsolidationQuotes.net -- pointed out; Even the act of having all of those credit card companies check your credit to see if you qualify for an account is something that can have a negative impact on your credit score When it comes to your payment history, you can severely damage your credit by consistently paying on your credit accounts more than 30 days late. When you build up a large amount of high interest rate credit card accounts, you will sometimes find yourself in a situation where your debt begins to overshadow your monthly income. You are forced to decide which accounts you can pay, and which ones will have to wait to get paid at a later date. If you do this often enough, it becomes very easy to forget to make payments and the next thing you know you are getting a letter from your creditors telling you that you are two or three months behind on your payments. One way that you can put an end to all of this is through debt consolidation. A debt consolidation company will gather up all of that high interest credit card debt, and reduce it to just one low interest rate consolidation loan payment. Your payments could be cut almost in half just by eliminating the very high monthly interest payments you were making. You will also see all of those high monthly service charges replaced by one low monthly loan service charge which can lower your monthly obligations even further. Now your credit debt is consolidated and those accounts are all paid, which means that the damage they were causing to your credit score will stop. The extra cash flow you have created by eliminating a large portion of your high interest rate credit card debt means that you can start using cash instead of credit to make regular purchases. Using cash raises your credit score, and now you will see that debt assistance has done many things to help repair and raise your credit score added A. Lillo. Further information about trusted and reputable companies for debt consolidation by visiting; http://www.FreeDebtConsolidationQuotes.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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