11.14.08 | Does Consolidation hurt my credit?
NO. How bout that? You just read the world’s shortest blog. I may be a man of few words, actually just one word, but my words are even more powerful than the semi-popular teenage alien superhero duo of Zan & Jayna. That’s right, the Wonder Twins! Actually, by boasting about my one word blog I have now far exceeded that loneliest number, darn!
Consolidation is merely shifting your loans from piles A, B, and C and condensing them into pile D. That doesn’t hurt your credit at all, in fact in many cases it helps because your monthly payment is a lot lower after consolidation and your credit report will reflects a Paid status next to each loan involved in the consolidation which adds points to your FICO score.
Now if you were to do a debt settlement where a third party was involved in negotiating your amount of debt down, than that could impact your credit negatively. Instead of a Paid status it would carry a Settled or Settled for Less than Full Balance status.
The Student Loan Consolidation blog is sponsored in part by:
You might be shifting piles but in the end, you still have a pile. A big stinking heaping pile of debt that hurts your wallet every month for that 5 year party that you called college.
November 20th, 2008 | #
turdman what are you talking about? how much debt you have and for how long you have it is irrelevant to the question. it’s about credit scores, not payment size/duration.
December 31st, 2008 | #