Does consolidating debt affect credit score

05-Feb-2020 07:38

While there is no one-size-fits-all answer to how debt consolidation will affect a person's credit, there are some general rules of thumb you can use to get an idea of how your credit score will be affected.

Your FICO credit score is calculated using the information on your credit report and a proprietary formula.

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First, you'll want to leave your old credit lines open to benefit from the lower credit utilization and credit history on the paid-off cards.

This leaves you with one monthly payment to manage and, if you do it right, a lower interest rate." data-reactid="27"If you're up to your neck in debt, consolidating your debts you owe into one loan may seem logical.