Scams abound.)" data-reactid="14"It’s certainly not impossible, though.Peer-to-peer lenders like Lending and Prosper.com, for example, routinely make these kinds of loans to borrowers with good credit.10 percent is determined by the types of credit you have. Consolidating debt can adversely impact your average age of credit (15 percent of your score), your inquiries (10 percent of your score ) and total amount owed (30 percent of your score).30 percent of your FICO score is determined by your debt-to-credit ratio, or the amount of money owed.Your credit score goes down if you charge close to the maximum amount of credit available to you.So if you have two credit cards with a 0 limit and charge on each, your debt-to-credit ratio may be lower than if you have one credit card with a 0 limit and you charge 0 on that card.When you’re ready to get out of debt, sometimes it’s hard to know which path you should take.For some people, debt consolidation will be the best option because it can allow you to group all your debt together, thereby making it easier to manage your debt – and in some cases lowering your monthly payment and interest rate at the same time (see our article on how debt consolidation works).
But does debt consolidation help or hurt your credit?
Your bank or credit union may also be willing to help you consolidate, and there are some online lenders that offer consolidation loans.
(Tip: Triple check to make sure you are dealing with a reputable site if you are shopping for a loan online.
Consolidating debt can help you pay off debt faster, lower the amount you must pay back or lower your monthly payments by stretching out the amount of time it takes to pay your debt.
However, consolidating debt can hurt your credit score.