Consolidating debt without hurting credit score

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On the other hand, bad credit will limit the amount you can borrow, and you’ll pay back the loan at a higher interest rate than someone with stellar credit.Creditors generally report information on your payments – both positive and negative – every 30 to 60 days.In general, banks and credit unions have strict loan criteria and only lend money to those with good or excellent credit.If you’re turned down for a debt consolidation loan by your bank or credit union, you may want to research debt consolidation companies, which tend to cater to consumers with less-than-perfect credit.If you try to negotiate it yourself you need to be adamant about how your agreement with them will look on your credit report.Credit Card companies wont always negotiate but if you can convince them that you are facing substantial debt you may be able to get some sort of debt settlement from them. If you’re in serious credit card debt, being contacted by collection agencies, or being sued by your creditors, your best option is to hire a consumer debt relief attorney.

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Lowering your credit card debt isn’t always synonymous with a negative credit score.

Your initial consultation has zero effect on your credit, as it is not reported to the credit bureaus.

If you enroll in a debt management plan, you'll make regular payments to a credit counseling agency, which will then share this money among your creditors.

But beware of the numerous scams and fraudulent companies out there; they could put you in a worse financial situation than you’re already in.

Take the proper steps to ensure you work with a legitimate, trustworthy debt consolidation company.

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