 TITLE: The Difference Between Debt Consolidation Loans and Debt Management Programs CONTENT: How Can They Affect My Credit?\n------------------------------\nDebt relief—if executed well—shouldn't hurt your credit, and it should help you improve your scores over time. With a debt consolidation loan or balance transfer card, there is potential for your score to dip momentarily after you incur a hard inquiry when applying for a new loan. Hard inquiries are reported on your credit score whenever someone checks your reports as part of a new credit application. This change to your credit is typically small and short-lived.\nA debt management plan shouldn't affect your scores, as long as you make all your debt repayments on time, whether via the credit counselor or on your own. When working with another party to pay back your debt, make sure they are trustworthy before letting them take on that responsibility for you. Payment history is the most important aspect of your credit scores, so whatever you do, make sure all your payments are made on time. END