Does dept consolidation ruin your credit? I hear this question a lot. There was a time when doing a debt consolidation program was the same as doing a chapter 13 bankruptcy. If you wanted to buy a home while in a credit consolidation program forget it. A mortgage underwriter would not even look at your mortgage loan. Today the rules have changed. With years of history behind these credit card consolidation programs, the data is showing that people who have enrolled in these programs are not as much of a credit risk as once thought. In fact they are no more risk than any other consumer credit borrower. What does hurt your credit score is having too much debt. When your debt ratio goes to high or you are maxing our your credit cards, your credit score will start dropping quickly.
Tips On Credit Card Consolidation
There are hundreds if not thousands of consumer credit agencies in this country. How do you know if a consolidation company is good or not? Well, I would not take their word for it. You should check them out before you sign up with them. If you remember Ameridebt, they were shut down by the government. Ameradebt had a lot of problems and a lot of complaints from their customers.
Best Credit Card Consolidation Companies
I’m not going to give any recommendations. You just need to do your home work. Check out the Better Business Bureau or your local consumer protection agency. Even a Google search of the company can yield a wealth of valuable information.
