Consolidating loans bad credit rating
As you roll revolving credit debt into a debt consolidation loan, and if you keep your balances on those accounts low, this can help to reduce your credit utilization and in time help boost your credit score.
It is commonly recommended to keep your credit utilization under 30%.
For people using a debt management plan for consolidation, it is important to fully understand your agreement with your credit counselor.
It is also important to know whether you are working with a credit counselor from a not-for-profit organization, or if you are working with a for-profit debt settlement/consolidation firm.
Consolidating your bills will help you reduce bill clutter, and will possibly provide lower rates. P2P Credit makes applying for a debt consolidation loan hassle free.
Simply click apply, select your estimated credit score, and provide some basic information about your financial situation.
When you consolidate revolving debt—like credit card accounts—you also will be working toward reducing your utilization ratio—one of the most important factors in calculating your credit score.