Anyone juggling three or four credit card bills has probably seen an ad promising to roll them all into one lower monthly payment.
With Americans carrying nearly $1.26 trillion in credit card debt as of mid-2026, just shy of the record set at the end of 2025, and average interest rates on balances that carry over sitting around 22%, debt consolidation has become one of the most searched-for ways out.
The worry that stops many people from pulling the trigger is simple: whether combining their debts will damage the credit score they have worked hard to build.
The short answer is that debt consolidation usually causes a small, temporary dip in your credit score, followed by a recovery and often a net gain if you keep up with payments.
The initial drop comes from the hard inquiry and the brand-new account that consolidation creates, and it typically costs fewer than five points.
