Does consolidating debt affect your credit score Girl forgets webcam was on
If you’re struggling with money, you can talk to someone today, online, by phone or face to face.We have specially trained advisers who can help you start sorting out your financial problems.Consolidating all your debts into one loan might appear to make life easier but there might be much better ways of dealing with debts.Find out more about how debt consolidation loans work, then get free debt advice before you make a decision.The amount of debt you have is one of the biggest factors that go into your credit score; your level of debt is 30% of your credit score.
You could be penalized for opening up a new account, an action that lowers your average credit age. (While some debt solutions can hurt your credit score, they may still be worth considering.Before you choose a debt consolidation loan, think about anything that might happen in the future which could stop you keeping up with repayments.For example, what if interest rates go up, or you fall ill or lose your job?Image source: Getty Imagescredit score in surprising ways.The type of debt consolidation you choose and the habits you keep afterward will determine what happens to your credit score." data-reactid="25"Debt consolidation can help you get out of overwhelming debt, but it may affect your credit score in surprising ways.