You have many credit scores

Does consolidating your bills hurt your credit

If you must close certain credit accounts, close only the most recently opened. An account appearing or not appearing in one of your credit reports does not mean you owe a debt legally.

Independent credit reporting agencies publish

It does not forgive your debt or even reduce it, but it does help you manage your debt by rolling it all into one monthly payment. Some of the products we feature are from our partners. Lending institutions use these scores to determine your level of risk on a loan or line of credit.

Closing credit card accounts lowers your amount of available credit, thereby changing your debt to limit ratio. This new loan typically carries a lower interest rate than that of your other debts.

If your consolidation loan is a cash-out refinance, then the net impact on your credit score will be positive because you increase your amount of available credit. You have many credit scores.

Having fewer payments

Independent credit reporting agencies publish consumer data. Having fewer payments to juggle and saving on interest can help you pay off debt. Debt consolidation can help or hurt your credit, depending on how you do it and what you do next. Some of the products we feature are from partners.