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Does consolidating credit cards affect credit score

Additionally, if the company managing your payments under your debt consolidation plan fails to make the payments on time, you are responsible, and those late payments may be reflected on your credit reports.

It uses a complex mathematical algorithm to come up with a score that predicts whether you are more or less likely to default on your next loan.

In theory, debt consolidation should not have a major impact on your credit score.

However, the fact is, debt consolidation can improve or hurt your credit score.

And the fact that many people do just that is why the action will temporarily cut your rating.