Debt Consolidation in McKinney: Does it affect the credit score?
Debt consolidation is a great way to save yourself from mounting debts, but again, you may be hurting your credit score in the process. Your concerns about debt consolidation are valid, considering you want to solve a debt problem and not make it worse. Debt consolidation can have long-term positive effects on your credit score, but you might deal with negative credit score issues when you initially start. How can debt consolidation hurt your credit score? Getting debt relief in McKinney methods will initially lower your credit score for various reasons. First, debt management plans require you to stop using your credit cards. By canceling your card, the amount of available credit you can access reduces, thus lowering your credit score. If you rely on Debt Consolidation in McKinney to pay off existing loans, your credit score will lower when lenders make a "hard inquiry." However, your preferred consolidation method will determine how much your credit will be affected. For