Does consolidating debt hurt your credit

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My credit score is low due to high credit card debt-to-income ratio.I have a mortgage in good standing, but am looking to refinance in six months to a year.The comments posted below are not provided, reviewed or approved by any company mentioned in our editorial content.Additionally, any companies mentioned in the content do not assume responsibility to ensure that all posts and/or questions are answered.You will, however, have to consider a few things: With that in mind, whatever route you choose, you need to be fairly certain that you will qualify for the debt consolidation loan or balance transfer.

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Balance transfer credit cards typically offer an introductory 0 percent interest rate on balances that you transfer to the card within a certain amount of time — and sometimes even on purchases.

You seem to have a good handle on your credit score, but if you haven’t looked at your credit reports lately you should probably do that and check for any errors before you get started.

You are entitled to get three free copies of your credit report every year – one from each of all three major credit bureaus, Equifax, Trans Union and Experian – at Annual Credit, or you can check your credit report and score for free anytime at Credit See related: When a balance transfer card trumps a debt consolidation plan, Staying on track after getting a debt consolidation loan Does a personal finance problem have you worried?

Todd Ossenfort has been chief operating officer for Pioneer Credit Counseling since 1998.

He writes our weekly "The Credit Guy" column, answering reader questions about credit counseling and debt issues. Dear Credit Guy, Will a debt consolidation loan hurt my credit? My credit score is 650, all payments made on time and in good standing.

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