An ever increasing number of consumers have found themselves facing drastic financial situations that require an immediate intervention, but most people know remarkably little about the different kinds of assistance that are available. One of the most common misconceptions is that seeking credit card debt consolidation will severely damage an individual’s credit score. Before automatically avoiding the solution that may prove to be the best option, a person needs to understand the actual impact on their credit rating.Although a FICO score does take into consideration the total amount of money owed, more emphasis is placed on how close the balances are to their maximum limit. Maxed out revolving accounts can significantly lower a rating and cause individuals to have trouble obtaining new loans. A credit card debt consolidation will help a consumer pay off the existing balances on their accounts which will certainly cause a credit score to increase. Although there may not be an immediate lowering of the total balance of all of the financial obligations, the main difference is that the indebtedness will begin to decrease every single month.Most individuals are aware that their financial scoring also depends on the length of time that their accounts have been established. A common misunderstanding is that all credit card debt consolidation programs require that a participant close every single account. The truth of the matter is that many professionals advise keeping at least the oldest account open. Closing the accounts may initially lower the credit score, but it will rebound quickly and be stronger than ever.An installment loan, such as a credit card debt consolidation program, will report to the credit bureaus every single month and can help a borrower establish an adequate payment history. For individuals with a weak credit standing, this is an excellent chance to improve their rating while paying down their balances. A credit score is based on both installment and revolving accounts, so a new loan is an excellent way to raise a credit rating when paying it on time consistently.While it is true that a credit card debt consolidation loan may cause a small portion of credit scores to temporarily decrease, it is still much better than continuing to struggle with unmanageable levels of indebtedness. Any score drop is certainly much less significant than one caused by a late payment, other delinquency, or a charge-off. Other financial management solutions are often seen to be more drastic and will often cause damage for 7-10 years or longer. The best option for each person is obviously different, but there should be no concerns about negative effects on a credit rating. In fact, most consumers view the opportunity as a chance to improve their financial standing without continuing to struggle for many years to come.