Most borrowers who consolidate debt through BHG improve their FICO® score by 40 points or more within a few months of funding*

Smart borrowers consolidate to strategically restructure debt, simplifying repayment, and in most cases, reducing interest costs. But for many BHG Financial customers, the impact extends beyond cash flow. Internal data shows that most borrowers who consolidated debt through BHG Financial improved their FICO® score by 40 points or more within a few months of funding.*

That outcome is often tied to one key factor: credit utilization. When high revolving credit card balances are paid down through a debt consolidation loan, utilization ratios typically decline, which can positively influence credit scores over time. Although individual results may vary, this is one of the primary reasons debt consolidation may improve your credit score.

In some cases, the benefit may be more pronounced if the debt used to pay off those balances is not subsequently reported as a new tradeline to the credit bureaus, allowing borrowers to realize the impact of lower revolving balances without the offsetting effect of a newly reported installment loan.

Consolidation can also create a more predictable repayment structure that’s easier to manage consistently. When payments are made on time, the positive impact can build over the following months and strengthen your financial profile.