How is Credit Evaluated?

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:

  1. Tear up the credit cards you are paying off. Do not get new ones. This is what got you into trouble in the first place. If you are paying off personal and auto loans, you will not get new ones until the debt consol

    idation loan is paid off.
  2. When all of your credit cards and other personal debt are paid off, your credit report will reflect that they have all been paid

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