Also included in your report is a history of the payments you’ve made on time, and those you have paid late (or not paid).
The 3 major credit bureaus (Equifax, Experian, and Trans Union) compile this information and make it available, along with your credit score, to lenders who want to find out how creditworthy you are.
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).
It depends on your particular situation and your ability to pay off debt.
Here are the questions you must answer in order to figure out if debt consolidation will hurt or help your credit in the long run: There are three main ways of doing debt consolidation: Each of these three methods requires a hard inquiry on your credit, which is the same as when you apply for a new credit card, submit a rental application, or get an auto loan.
In theory, debt consolidation should not have a major impact on your credit score.
However, the fact is, debt consolidation can improve or hurt your credit score.A bigger concern than the hard credit inquiry is how the debt consolidation might affect your credit utilization.