Consolidating credit card debt affect credit score Northern sex chat sites

31 Jul

The simplicity of that single payment is enticing to many who have debt issues.It is quite likely that the interest rate on your debt consolidation loan is lower than rates on your other debts.

Closing your credit accounts does have a negative impact on your credit score, even if it is to discourage further spending.

Credit reporting agencies issue credit scores to all consumers based on your credit history.

Lending institutions use these scores to determine your level of risk on a loan or line of credit.

Interest rates do not appear on a credit report; therefore, the interest rates on your credit cards do not affect your credit worthiness or credit scores.

While consolidating those debts into a single payment with a lower interest rate can help you pay off debt faster, you should be wary of companies offering debt consolidation plans.