by 
The Curious Bag
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<h4 class="dechead">On One Hand: Consilidation Can Hurt Score
For someone in serious trouble with debt, a debt consolidation loan might seem like a good option. However, according to Craig Watts of Fair Isaac Corp., consolidation can have a negative effect on your credit score. Also, according to Craig Viale of Cambridge Credit Corp., 70 percent of those who take out consolidation loans end up with the same amount of debt two years later because their financial habits do not change.
On the Other: Depends on Consumer Behavior
The website 360 degrees of Financial Literacy says that consolidation could actually help someone's credit score in the long run if he is disciplined enough not to run up more debt. If the debtor stays current on his payments, then he will see an improved credit score over time.
Bottom Line
Most experts agree that debt consolidation can hurt a debtor's credit score, especially short term and even in the long run if the behavior that led to the accumulation of the debt remains the same. If you are considering debt consolidation, seek the advice of a reputable credit counselor.
Source:
Bankrate.com: Considering Your Consolidation OPtions
Bankrate.com: Dangers of Debt Consolidation
MSN Money: The Tricks and Traps of Debt Consolidation
Resource:
Bankrate .com: FICO score estimator
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