 TITLE: Can Debt Consolidation Affect Your Credit Score? CONTENT: Can Debt Consolidation Help My Credit Score?\n--------------------------------------------\nWhile debt consolidation is mainly a method of lowering or eliminating mounting debt, it can also have a positive effect on your credit score. Beyond helping you reduce your number of monthly debt payments and save on interest over the life of your loans, debt consolidation can help you eliminate or drastically reduce your total debt over time.\nWhen 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. Your credit utilization ratio is calculated by comparing how much available credit you have and how much you use each month. Credit utilization accounts for 30% of your credit score.\nImagine if you have one credit card with a limit of $10,000. If the balance on that card is $5,000, your credit utilization ratio is 50%. It is commonly recommended to keep your credit utilization under 30%. As you roll revolving credit debt into a debt consolidation loan, and if you keep your balances on those accounts low, this can help to reduce your credit utilization and in time help boost your credit score. END