With consolidation, you’re still paying your debt off –you’re just doing it in a way that’s more manageable for your budget.

So unless you choose an option that’s not right for your situation, there’s nothing negative that would appear on your credit report.

Some plans require you to become delinquent on your accounts in order to enter into the program.

If you still have questions or need help exploring your options for consolidation, call us at But no matter which option you choose, as long as it’s the right option to fit your needs and financial situation, then the overall impact of debt consolidation on your credit should be positive.There are a lot of benefits to this move, including the potential to give your credit score a boost.The cliche about rearranging the deck chairs on the Titanic came to mind when I read your question.Moving the balances of your credit card accounts into an installment loan for purposes of consolidation may cause a slight drop in your credit score.The principal reason is you will have a new inquiry and huge installment loan appear on your credit report, even though you also will have much lower debt-to-credit ratios on your credit cards.