Can Taking A Debt Consolidation Loan In Mckinney Hurt Your Credit Score?
How much and how long a debt consolidation loan will affect your credit score depends on the method of consolidation you use. Debt consolidation may positively affect your credit, but it may also hurt your credit score. With debt consolidation, all your credit card bills are combined into one debt with lower interest, giving you only one monthly payment. There are different debt consolidation methods that can have either a major or minor impact on your credit score. How Debt Consolidation affects your Credit Score Taking a Debt Consolidation in Mckinney can hurt your credit score in a few ways. This is because many levers are pulled at once to help you deal with the debt at hand. Some of the ways it can hurt your credit score include the following; • New credit account After debt consolidation, you may decide to open a new credit account for a personal loan or a credit card. However, this will lower your credit score as lenders look at your account as a new risk. No lender likes