Debt Consolidation Could Improve Your Credit Rating

Consolidating your debt can potentially improve your credit score, especially if you have a large amount of credit card debt. Your credit score is greatly influenced by your credit card balances and the amount of credit you have available to you. Reducing your credit card debt by consolidating it into a home loan can help you rebuild your credit rating while getting better control of your finances.

A debt consolidation loan may allow you to combine the balances from credit cards and any unsecured loans, like an auto loan, into one manageable, convenient monthly payment. Because it's a secured loan (a loan backed by your home as collateral), you are typically able to get a much lower interest rate and reduce your total monthly payments.

The benefit of lower interest rates is that you may be able to pay off your debt faster (if you continue to make the same higher payments), since more of your payment may go toward the principal you borrowed, not only to cover interest. You also don’t need to worry about the hassle of paying multiple bills and potentially missing a payment, which can hurt your credit rating. The longer you keep a good record of on-time payments, the better your credit score!

With a more manageable payment, you can have a fresh start and a chance to rebuild your credit. A debt consolidation loan isn’t a one-step solution to improving your credit; but it can be the first step to getting your debt under control, and being in a financial position to rebuild your credit.

Learn more about rebuilding your credit.

Even if other lenders have told you that you have "bad credit," a debt consolidation loan might still be available to you. Less than perfect credit can be just a temporary situation. Everyone has setbacks that can cause them to get into debt, but Countrywide’s Full Spectrum Lending may be able to help you consolidate your debt, reduce your payments and move you toward a better financial future with a credit repair debt consolidation loan. You may even qualify for a prime loan.

Talk to one of Countrywide's Full Spectrum Lending's Home Loan Consultants at 1-800-909-8217 to find how you may be able to benefit from a debt consolidation loan.