Matrix Mortgage Global – Do Consolidation Loans Hurt Your Credit Score?

Many people considering debt consolidation loans worry that it might hurt their credit score. But will it really? That depends on a number of factors, including your current credit score. This is easy enough to find, online for free. Monitoring your credit on a monthly basis can help you see, in real time, what sort of things impact your score and help motivate you to make good financial decisions to keep that number going up.

The reality is that even the most financially savvy credit seeker can find themselves in over their head. The key is to take control of your situation and figure out what you can to do to move forward while mitigating the damages to your credit as best as you can in your individual circumstance.

The best advice for anyone wanting to improve their score is to make sure you are meeting your monthly obligations on time. If this is currently impossible, consolidating can help by lowering your overall interest rates, thus lowering your monthly payments and putting more of each payment towards the principle. Over time consistent payments towards the balance will work to increase your score.

Another factor to consider is your credit utilization, this is the term they use to talk about how much credit you use compared to how much you have available. If all of your credit cards are maxed, obtaining more credit to pay them off can help to decrease your utilization and increase your score, provided of course that you keep the credit card accounts open and the balance remaining at zero.

We have a number of options to help you take control of your finances.

1. Refinancing

We offer mortgage refinancing at rates that are better than those offered by banks. Refinancing your mortgage allows you to pay off your current mortgage so you can address your other debts, then replaces it with a new mortgage and new terms.

2. Home equity loans

A home equity loan is a type of loan whereby homeowners use the equity in their home as collateral.  You basically put a lien against your home, which reduces the equity in your home to free up money you can use to pay off your debt.

3. Debt Consolidation Loan

You can use money in your home to consolidate all of your debt. Combining all of your debts and adding them onto your mortgage, also known as refinancing, has the advantage of lowering your monthly payments significantly allowing you the freedom you need to get on top of your debt!

If you would like to learn more about which option is right for you, we invite you to contact a member of our team at 1-877-388-4058 or visit Matrix Mortgage Global