How does consolidating affect your credit
And the fact that many people do just that is why the action will temporarily cut your rating.
For the record, and for those who don't know the difference, a credit rating and a credit score are 2 different things.
Another type of debt consolidation is one you would get through your mortgage lender – a HELOC or home equity line of credit.
This essentially allows you to borrow money to pay off your debts using your home as collateral.
In theory, debt consolidation should not have a major impact on your credit score.