The myth about decreasing a credit after debt consolidation is based on the experience of some borrowers. Still, in fact, debt consolidation does no harm for the credit, especially, when it comes to the consolidation of the personal loans.
When it comes to the installment loans for bad credit, the situation differs a little bit as the noticeable installment credit will appear in your credit history. Unfortunately, relatively low debt-to-credit ratio won’t change the situation.
Still, there is the other side of the moon, where debt consolidation is even better for the credit as it might give a borrower a chance to pay the overall debt faster. So, if you follow the directions of your lender, you will likely pass the repayment process without a visible harm for the credit.
Most of the financial experts encourage the borrowers to pay attention to the other issues related to the credit management. Such things like a worthy credit plan, saving account that would cover all unpredictable expenses are crucial but remain on the second places. Therefore, don’t be focused on one issue as it can weaken the positions in other moments.