What Does Debt Consolidation Do to Your Credit Score?

debt consolidation

It depends.  One quick point to start, may people use the words debt consolidation and debt settlement interchangeably.  However, I want to explain the significant difference in these plans.  

Consolidation is the getting a new loan and using it to pay off prior debts.  Debt settlement is the negotiation of debts to reduce the balance owed and obtain a settlement lump sum or payment plan.  

If you choose consolidation, opening a new line of credit can reduce your score temporarily because you now have a new debt.  This would be necessary if you plan on taking out a large loan to consolidate a few smaller debts you may owe.  The most difficult part of a consolidation loan is the qualification process. Many of my clients are not able to qualify for the loan when they apply.  This may be because they already have delinquencies on their accounts or their credit scores have already been reduced.  This sometimes makes it difficult to qualify for a consolidation loan.  

Also another factor is the interest rate of the consolidation loan.  If the interest rate is too high when you consolidate, you will not receive the relief you are looking for on a monthly basis.  

It is important to find an attorney who can explain all of your debt relief options.  Our team can provide a free personalized debt consultation that allows you to make an informed decision.   There are many options for debt relief, we make sure you get the most from your fresh start.  


If you have any questions about the topic discussed in this article, or any bankruptcy law matter, please give us a call at Bononi & Company 724-832-2499.


The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for advice regarding your individual situation. We invite you to contact us and welcome your calls, letters and electronic mail. Contacting us does not create an attorney-client relationship. Please do not send any confidential information to us until such time as an attorney-client relationship has been established.

Privacy Policy

This privacy policy discloses the privacy practices for www.bononiandbononi.com. This privacy policy applies solely to information collected by this web site. It will notify you of the following:

  1. What personally identifiable information is collected from you through the web site, how it is used and with whom it may be shared.
  2. What choices are available to you regarding the use of your data.
  3. The security procedures in place to protect the misuse of your information.
  4. How you can correct any inaccuracies in the information.

Information Collection, Use, and Sharing 
We are the sole owners of the information collected on this site. We only have access to/collect information that you voluntarily give us via email or other direct contact from you. We will not sell or rent this information to anyone.

We will use your information to respond to you, regarding the reason you contacted us. We will not share your information with any third party outside of our organization, other than as necessary.

Unless you ask us not to, we may contact you via email in the future to tell you about specials, new products or services, or changes to this privacy policy.

Your Access to and Control Over Information 
You may opt out of any future contacts from us at any time. You can do the following at any time by contacting us via the email address or phone number given on our website:

  • See what data we have about you, if any.
  • Change/correct any data we have about you.
  • Have us delete any data we have about you.
  • Express any concern you have about our use of your data.

We take precautions to protect your information. When you submit sensitive information via the website, your information is protected both online and offline.

We also protect your information offline. Only employees who need the information to perform a specific job (for example, billing or customer service) are granted access to personally identifiable information. The computers/servers in which we store personally identifiable information are kept in a secure environment.


Our Privacy Policy may change from time to time and all updates will be posted on this page.

If you feel that we are not abiding by this privacy policy, you should contact us immediately via telephone at 412-832-2499