Does consolidating debt affect your credit dating site kildare
Consolidating your maxed out credit cards with an installment loan (a debt consolidation loan) will more than likely help your credit score.
Having a variety of different types of credit accounts will help improve your credit score and paying off credit card debt is always a good idea.
But you’ll also be given an R7 credit rating that will last for the following 3 years.
An R7 credit rating will show up on your report as “making regular payments through a special arrangement to settle your debts”.
This completely depends on where you are financially before you enter a debt management program.
A debt consolidation loan can be an extremely useful tool, just make sure you’re getting one that is actually going to help your debt situation, and not hurt it.
Your best bet is to go with an alternative lender, especially if your credit is already less than great.
Also, make sure that the low-interest rate you thought you were getting doesn’t end after a short introductory period.
There are a few issues that you need to take into consideration before you decide that a balance transfer is a good idea: If you’re able to find a 0% credit card and you’re able to both save money because of a lower interest rate and pay off your debts faster, a balance transfer can work.