Is it true if you do a debt consolidation it can show up as a bancruptcy on CR? How can I pay off?
Question:
Answer:
It does not show up as a bankruptcy, but it is detrimental to your credit score. It shows as a credit counseling account and usually, it is settled for "less than full balance", again something that hurts your credit score.
This is not true.
There are two possibilities.
First a true debt consolidation loan simply transfers your balance from several lenders to one and will not effect your score since you are still paying the full balance just at a lower payment.
Second would be credit counseling which reduces the amount that you pay back and shows on your credit as "included in credit counseling". This will lower your score, but not by near as much as the accounts showing delinquent.
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