Consolidating debt hurt credit score

Ideally, that new debt has a lower interest rate than your existing debt, making payments more manageable or the payoff period shorter.Options to consolidate your credit card and other debts include a balance transfer credit card, an unsecured personal loan, a home equity loan or line of credit and a 401(k) loan.What follows will help you understand credit score impacts that relate to the most common and legitimate debt solutions.

How little time it takes for your credit to bounce back, or to get approved for different types of financing, may surprise you.Focusing on getting out of debt with the right tools comes first.Your credit reports and credit score will heal and bounce back given time.Before you choose a card, calculate whether the interest you save over time will wipe out the cost of the fee.A common concern you may have when searching for the best way to get out of overwhelming debt is what can happen to your credit score.