If you are thinking of taking out a personal loan, then you might want to think again about opting for the moratorium on Personal Loans. While the lenders will probably not be too keen on lending money in a period where the lender is not sure what the future might hold, it will make your credit score look a bit better in the eyes of the credit bureaus. However, there is one big drawback to opting for the moratorium; it will take all your current debts off your credit report. If you have any debt that has reached over $10k or if you have had a revolving credit line for a couple of months, then you should consider this option before opting for the moratorium.
You can expect that your credit score will be negatively affected because of the moratorium on Personal Loans. This can lead to problems down the road, especially if you are taking out new credit card bills or loans. So how will you get around this problem? You should opt for the moratorium on Personal Loans and see whether it makes your credit score look a little bit better, but only if you have a good reason for opting for it.
If you do not need the money right now, then why would you opt for the moratorium on Personal Loans? The answer is quite simple: if you have any sort of emergency such as the need for cash, then it is worth considering using the moratorium on Personal Loans. However, it is not worth getting in debt just to have it. Hence, you should not opt for the moratorium unless you really need it.
If you are wondering if the moratorium on Personal Loans will affect your credit score negatively, then the answer is yes. There is no such thing as a perfectly normal credit situation. All the people who have a perfect credit score will not have the same credit profile. Hence, the credit score will vary with each person depending on his/her individual history and personal circumstances.
Debt consolidation will lower your credit score, but you must also remember that you should not use debt to try and repair your score. Debt consolidation can actually make your score worse because the debts will be more than the total amount you have to pay and this will lower your credit score.
So should you opt for the moratorium on Personal Loans? I would recommend that you stay away from it unless you have absolutely no other choice left. and even if you decide to do so, then go ahead and pay your debts only once your debt consolidation deal comes into effect. and you can also opt for another loan to tide you over till your consolidation deal is completed.