Does a consolidation loan hurt your credit?

Answer by  oddflash (902)

Usually a consolidation loan does not hurt your credit. As long as you have been paying the loans or credit cards that you are consolidating on time and for a specific amount of time ( which varies by creditor). The consolidation loan may even help to improve your credit score.

Answer by  Romz (222)

It generally should not hurt your credit. However, a credit score can go down if one's credit record is checked frequently. Aside from that, it actually may help your credit as the process of consolidation requires that one loan or credit card debt is transferred to a central account. You will have one payment that can be easily managed.

Answer by  jwhyte24 (29)

Consolidating loans can hurt your credit; combining small loans or lines of credit into one may take a from your credit history. Ceditors look at your history to determine worthiness.

Answer by  Prajeesh (369)

Yes. The consolidation loan hurt your credit. By applying for a debt consolidation loan you could actually lose a few points on your score. So try to contact bank personal regarding this.