September 2010
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When getting a loan, if you say that you are getting it for debt consolidation, how does it affect you?

Does it give you a negative mark on your credit history?

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3 comments to When getting a loan, if you say that you are getting it for debt consolidation, how does it affect you?

  • spaz

    no. it is just treated as any other consumer loan for credit reporting purposes. although it will usually require collateral, this is transparent on your credit report.

    anyone looking at your credit report will know that you have a consumer loan outstanding from a certain organization, that is all.

  • B2B 8/30/08!!!

    No it doesnt leave a negative mark, because your other stuff will be paid off for the same amount… but if you say its for debt payoffs they will probably want the payoff balances and want to pay them directly so they know thats what its going for.

  • netdebt1

    Everything affects your credit in some way, some more than others

    Your question needs to be more specific. If its just a general loan and not designed as a loan consolidation and you pay off your other debts and don’t close the accounts there might not be a significant effect, however credit bureaus change their scoring systems all the time and nobody really knows.

    In general Loan Consolidation is only good if its used to avoid delinquencies and lower your rate, not only your monthly payment.

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