Will my Credit Score Improve by Consolidating my Debts?
Author: Boychuk Mortgage Group |
While completing a consolidation mortgage won’t always improve your credit score right away, over time you will likely see your score jump as you move forward with good practices.
If you’re carrying a balance above 40% of any credit line month over month, this is where you will typically see your score drop. Where utilization of a trade line helps improve credit, over utilizing a trade line will have the opposite effect.
By paying down these credit products, you will see a gradual boost in your score as you maintain a balance under that credit utilization threshold.