Consolidating credit card debt without hurting your credit
Debt consolidation, like all the other debt relief strategies, will have an effect on your finances.
That can lead you to more debt and in effect, a lower credit rating.
All your payments will be credited towards the principal debt - which is a good thing as it will help lower your balance significantly.
This will improve your credit utilization rate and in effect, your credit score.
When it comes to debt consolidation loans, the hard inquiry that the lender will make on your credit report could reflect badly on your score.
If you apply for a new loan with various lenders, that can bring your score down.