subject: Does a Debt Consolidation Agency Hurt Credit in Any Way? [print this page] Author: Hector Milla Author: Hector Milla
When a person becomes in debt it means that they owe money, but when those debts turn into long term arrears, court orders and payments collected by collection agencies that is when owing money starts to become stressful. What all this long term adverse credit will do to your credit score, is bring any high or average ratings crashing down with one heck of a bump. The first a person usually knows about this is when their next loan application is declined, leaving them scratching their head. Paula de la Torre Editor of the "Best Debt Consolidation Services" website -- http://www.ReputableDebtConsolidationCompanies.com -- pointed out; Unfortunately your credit rating will stay like this for a long time to come unless you take action to pay off your debts. Using a consolidation agency is one way of paying off those loans and turning your reputation with credit scoring companies round Your rating with Experian and others will not be affected any worse than it already is in your current financial state. So worrying about credit scoring is the last thing that should really be on your mind, after all you are in no position to be seeking any loans other than one that will consolidate your debts. If you keep that in mind, then once you have consolidated your debts and kept up with your payment scheme in place every month then your scores with the big three will eventually go back up. It is a myth that your credit report will reflect permanently your use of a debt consolidation agency, many lenders see this as you being able to make a stand against debt if you get in trouble P. de la Torre added. When you read some reviews or reports regarding consolidation services affecting your good name with credit reporting companies, it is more than likely the people making those reviews defaulted many times on their consolidation loans. They may have even taken out more credit when there rating became more reputable, but defaulted on those too. Keep this information in mind and remember that you will recover sooner or later financially as long as you stay composed and pay off your consolidatory loan. Further information about trusted and reputable companies for debt consolidation by visiting; http://www.ReputableDebtConsolidationCompanies.comAbout the Author:
Hector Milla runs his corporate website at http://www.OpsRegs.com where you can see all his articles and press releases.
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