A: Applying for a debt consolidation loan will result in a hard inquiry on your credit report, which can temporarily lower your score. However, if you make your loan payments on time, your credit score will improve over time.
Q: What are the risks of debt consolidation?
A: The biggest risk of debt consolidation is that you may end up with a higher interest rate on your new loan than you had on your previous debts. It’s important to compare loan offers from multiple lenders and choose the one with the lowest interest rate and fees.
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