An article in the American Chronicle examines how debt consolidation affects your credit score. This information is particularly good to know as many people often enter into debt consolidation arrangements in an attempt to systematically reduce their debt prior to applying for a major purchase like a home or auto loan. The bottom line…be prepared to wait for at least six months for your credit score to adjust from the flux caused by the consolidation. The article points out that

Even the accounts that are current once you start the consolidation program should be expected to run late for at least a month or two. Depending on your creditors the situation may be even worse. This is due to the fact that some of them require at least three periods of payments through the agency to reconsider the account state. This implies that your account will show late or missed for at least four months.

This information remains consistent with the the adjustment curves of other methods of clearing up one’s credit such as credit repair, etc. where there is no instant gratification. Read the entire article at the American Chronicle.

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