- Do debt consolidation programs hurt your credit score?Debt consolidation may have a temporarily hurt your credit score but that is when debts are consolidated, the credit scores are checked with lowers it slightly. Hard inquiry is performed by the lenders which lowers the score by an approximate of 10 points.
- Is it possible to get a loan while I am in debt consolidation?Yes it is possible to get a loan while consolidating debt but it is best to get an expert on board with you. You may be able to qualify for a loan but only if your financials are in line with the requirements of the lenders.
- Is there an average fee for debt consolidation?Debt consolidation is the process of combining multiple debts into one so that you can have a manageable debt payment plan. This is done by the lenders who take a fee between 15 to 25% of the original amount of debt. This fee is to be paid as service charges by the lender.
- When will credit scores rise after debt settlement?Based on your current financial and credit score condition, the credit scores may rise after 6 to 24 months. It is highly dependent on how bad your credit score after debt settlement is. But the improvement will come since after debt settlement you will be sending out payments timely.
- Are debt consolidations risky?Along with the temporary damage to your credit score other potential risks involve you losing the collateral you put against the consolidated debt. If one does not get enough interest rates then you might end up paying more than you must. Another risk associated with it is you getting into more trouble then you were planning to come out of.
- Buying a car after debt settlement is possible?Is it possible? Yes. It is possible to get a loan for a car after you have consolidated your debts. However, is it really necessary? This is what the true question is. The service providers often make a deep look on your credit score history, the financials, and debt management; after all this the lender may decide to give you a loan.
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