The only time debt consolidation loans in Pennsylvania will affect your credit score is in a positive way. While it may be counted as a new credit account, you won’t hear a single complaint from any of your creditors.
Their main goal, after all, is that you settle your obligations with them and debt consolidation is one way to do this. Over time, once you have wiped all the slate clean, your credit score will only improve.
People are wary about debt consolidation service because of misunderstanding and misconception. The problem is that not too many families know anything about what service providers like Christian Debt Counselors do.
What debt consolidation and debt management service providers do is work with you to rationalize your household finances. But we work in strict parameters that follow the creditors have set up for people who may need some debt counseling.
While still following those strict guidelines, Christian Debt Counselors can extend the services and benefits to more clients due to our many years of experience in the industry.
Doesn’t it Add Another Account to My Credit Score?
When you go through debt consolidation loans in Pennsylvania, it is counted as a new loan into your credit history. But here’s the thing: it also wipes out all the other accounts clean. They will be reflected in your credit history as paid in full.
As you know, your creditors have a massive influence on your credit score. The rating is the basis of banks and lending institutions to determine the type of risks they are taking on a particular borrower. If your credit score is shot, it’s virtually impossible to take out a new loan. It’s either your application is rejected outright, or they charge you very high interest rates.
The trick, of course, is that you should be consistent in paying off the new loan as a result of debt consolidation. When creditors are convinced that you have full accountability of your debt, they will back down.
Are My Debts Forgiven?
Debt consolidation means that you lump all your debts in a single payment by summing up all your bills. However, only unsecured debts can be included in the consolidation, which means housing and car mortgages remain untouched.
Christian Debt Counselors, meanwhile, will work to reduce your total monthly payments by negotiating with your creditors to cut the interest rates. In this way, you won’t be spending all your money on interest and surcharges. Instead, you will be making a dent in the principal balance of your credit card payments, for instance.
If you are ready to be more responsible for your finances, our resident experts at Christian Debt Counselors are always prepared to help you get debt consolidation loans in Pennsylvania. Should you have any questions, you can always consult with our debt management specialists. We do not charge a fee for this service. We can also refer you to the right attorney who will look over your case.Debt Consolidation Loans Pennsylvania