Consolidating credit card debt for students

It is important to make sure that your credit counseling organization makes all payments for you on time.

Credit counseling organizations typically make the agreed-upon debt payments for you each month, and so the responsibility is on them to make sure they pay each bill on time.

The main benefit of consolidating government-backed student loans is streamlining the payment process.

The interest rate for your new consolidated loan will be based on what your past interest rates were and will most likely not be lower.

When you consolidate revolving debt—like credit card accounts—you also will be working toward reducing your utilization ratio—one of the most important factors in calculating your credit score.

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It is commonly recommended to keep your credit utilization under 30%.It is used as a method of reducing or eliminating debt.Debt consolidation has the potential to hurt your credit score in several ways, depending on which method you use.People with "fair" to "exceptional" credit scores will have an easier time getting approved for a new loan, and will also be eligible for a lower interest rate.Knowing your credit score before you apply for debt consolidation loans will help you choose the right loan and avoid incurring multiple hard inquiries in a short period of time.

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