i hаνе bееn tοld thаt consolidation loans/pay οff аll loans throuh a finance company, shows up οn уουr credit аѕ a negative οr bаd dесіѕіοn.
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Debt Counseling and Consolidating Debts Unsecured, Credit Card, Secured
Firstly, get the loan via a bank rather than a finance company.
Yes it will effect you credit score (As it will show more outstanding credit). When credit checks are done they see all sources of debt and potential debt (unused balances on Credit Cards) all of these things effect the credit score. BUT, if you are currently having troubles paying all the bills, there may already me marks against your credit (late payment, missed payment etc. ). Once you consolidate all the debts (and keep credit card down), over time these have a lesser effect.
So a consolidation loan over time will actually help your credit rating, assuming you get you financiers in order.
If the loan helps you get your bills paid on time, it really doesn’t matter what the short term affect on your credit rating is.
You get good credit by paying your bills on time. If your bills are paid on time, you will always have good credit.
If you do get this loan, close all open accounts that you paid off with the loan. The one thing that many people do is get a consolidation loan to pay off a bunch of open accounts, then run up the balances on the open accounts they just paid off because the credit is now available.