Debt Consolidation

The Truth about Debt Consolidation

In order to avoid the state of bankruptcy, more and more people are turning to debt consolidation services to enable them to pay for outstanding dues. Although it’s always been a viable option for handling a number of unsettled loans all at the same time, there are some people who are still uneasy about the idea. If you’re strongly considering debt consolidation to make your financial situation easier on you, then here is a short article on the truth about debt consolidation that might be able to help you.

Many people fear debt consolidation for the simple reason that it might damage their credit rating in some way. The truth is, this service might even help you out by consolidating different loan amounts and interest rates into just one single loan. The goal here is to enable you to manage your finances properly by only dealing with one loan to pay for. This eliminates the hassle of remembering different due dates and paying a substantial amount of interest rates which can be quite grueling to track one by one. It will also save you a lot of money because loan consolidation usually means a lower interest rate than the different interest rates of your original loans combined.

There is no way debt consolidation will be able to harm your credit score, not unless you do not follow the stipulated conditions of your loan contract that you and your creditor have agreed upon. For example, not paying the monthly amount due on time can be grounds for a negative impact on your credit score, so can defaulting completely. This is why before you even consider getting all your loans consolidated, it’s important that you make sure that all the conditions stated in the contract can realistically be attained by you. And don’t neglect to do your own research on your rights as a borrower because you need to completely understand all the repercussions that may arise when you or your creditor deviates from the loan contract.

So you see, a debt consolidating scheme has two faces. It can help a person get back on their feet with their finances, and it can also make another person’s financial situation much worse. In the end, it’s really up to your and what your outlook on money is. If you don’t learn to take control over your spending habits, then it’s suffice to say that there’s no debt consolidating plan that could help you in the long run.

Tags: credit score, debt consolidation, debt consolidation cap, debt consolidation services

What is the difference between a credit card and a pre approved credit card or is there no difference?

I am looking to raise my credit score and I have been turned down buy credit card companies and I spoke with someone that said I could get a pre approved credit card but i thought all credit cards were pre approved. Please help me I need to raise my credit score. Thanks

Tags: approved credit card, credit card companies, credit cards, credit score, pre approved credit, pre approved credit card

What happens if your credit score gets lowered due to late auto payments, but then you pay off the auto loan?

In repairing a credit report score, an auto loan that had two late payments is then paid off in full, what happens to that part of the credit report? How long would it take to increase the credit score?

Tags: auto loan, credit report score, credit score, late payments

What credit card would you recommend for someone trying to re-establish good credit history?

I have decent credit but I had cancelled all my cards when trying to get out of debt. I am now free of all unsecured debt but I need to have a card so in the future I won’t be hurt by having no credit.

I’m thinking I want a card with no annual fee and a low APR. The card would only be used very occassionally and paid off immediately. I have no desire to repeat previous mistakes.

Does anyone have any recommendations for a good card for this purpose?
Okay, as I said, but everyone is skipping, is that I have decent credit. My credit score is 700.

When I got into trouble I went into debt consolidation right away BEFORE my credit got screwed up.

But I do appreciate those of you who are taking the time to answer.

Tags: cards, credit score, debt consolidation, desire, taking the time, unsecured debt

What does closing a store credit card do to your credit?

Two questions:
1) If I have a store card that I don’t really use anymore, what effect would closing that card have on my credit?

2) Stores always ask me to open a store card to save 15% and say I can close it later if I don’t want it. I always say no. Wouldn’t it negatively affect your credit score to be doing that all the time?

Tags: credit score, store card