Does debt consolidation help to lower credit utilization ratio?

Hello everybody!!! I have a question on debt consolidation. I hope this forum can give me the correct answer. I have 4 delinquent credit cards. I am thinking to enroll into a debt consolidation program. When I start paying off the outstanding balances through the consolidation company, will my credit utilization ratio decrease? Will my credit score increase?

2 Answers

But I have heard that debt consolidation does not make any difference to credit utilization ratio. Is it correct? 


As far as I know, yes, debt consolidation can help you in reducing your credit utilization ratio but only if you keep the credit card accounts open and don't use them.


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