Your credit is classified as excellent, good, average, fair or poor dependent upon a score given to you by three major credit bureaus. These bureaus receive information about your debt and your payments each month. If you maintain payments and keep your debt relatively reasonable, you can expect to have a good score. If you have lots of debt and have been late making payments, however, your score will drop.
How Can Debt Consolidation Help?
If you consider debt consolidation, you are basically looking at taking out one big loan in order to pay off all of your other debt, and, hopefully, secure a lower total payment than your earlier debt required. This technique can be a great help to you personally and help your credit rating, if you can commit to the following:
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