Does debt consolidation look bad on credit report or for credit card companies?

Debt consolidation can mean different things. It often means engaging in a risky tactic of deliberately defaulting on your credit cards so that a 3rd party company can try to negotiate settlements. This process destroys your credit rating. If you mean getting a real consolidation loan (not debt settlement) to pay off your debts, then this process would probably not affect your credit rating/score one way or another.

Stay away from any “debt consolidation” company that promises to cut your debt and payments in half through debt settlement….This is a risky tactic of deliberately ceasing all payments to creditors and forcing your accounts into default to attempt settlements. You pay a monthly fee to a debt consolidator….this entire fee goes towards building a settlement account and to the consolidator’s fees to “settle” your accounts in the future. Your credit card companies will deliberately not be paid so that all the accounts will default/charge-off so that they can attempt settlements at around 50%. If you are current on your accounts, this process will ruin your credit rating for sure. Debt settlement is like a roll off the dice with your finances…You can never predict how your creditors will respond to the deliberate defaulting of your accounts…they might settle at 50%…or they might serve you a summons, take you to court…and if they win, you could be looking at wage garnishment.