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Consolidating Multiple Loans Can Improve Utilisation and Score Stability
One single consolidated loan stabilises utilisation and reduces missed payment risk.
Borrowers with 3–5 personal loans and multiple credit cards usually end up showing high fragmented utilisation and volatility.
Consolidating all liabilities into a single lower EMI loan reduces default friction points, lowers average monthly interest drain and compresses utilisation volatility on bureau reporting. This can help lift the score by 25-40 points over 6-8 months.
Consolidation also simplifies cash flow planning and reduces the probability of accidental missed repayments which damage payment history weightage permanently.