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\nThe good news however, is that consolidation loans can be a powerful tool in helping you improve your
\ncredit over the long term.<\/p>\n
Consolidating your debt using tools such as second mortgages and refinancing can be a great way to
\nlower you monthly interest payments and to help you get out of debt faster. Sometimes however,
\npeople are concerned that getting a consolidation loan is going to lower their credit score.
\nWell, the truth is that it can \u2013 at least in the short term.<\/p>\n
\nThe good news however, is that consolidation loans can be a powerful tool in helping you improve your
\ncredit over the long term.<\/p>\n
Let\u2019s take a look at how this works.<\/strong><\/p>\n Debt Consolidation Loans Can Lower Your Credit Score in the Short Term
\nWhatever method you use to consolidate your debt, it is going to mean opening a new credit account
\nbefore you can actually transfer your debts from your high interest accounts. Whenever you open a new
\naccount, lenders see this as a risk. As such, it is going to temporarily lower your credit score.<\/p>\n