The calculation of your credit score or rating is based on a number of factors such as the number and types of debts you owe, your income versus debt ratio and your history of keeping up or failing to meet up with scheduled payments on time. If you presently have a poor or low credit score then you obviously have had a bad record with debt. You may have been late with your monthly debt repayments on a number of occasions and would have a number of various types of debt yet unpaid such as overdraft, credit cards or mortgage. At this point, you should consider a debt consolidation loan to help you repair your credit rating.A debt consolidation is a unique loan designed to help pull you out of the weight of debts quickly. The debt consolidation loan pays off all your present debt. The consolidation loan then becomes the only debt you have to deal with. That is why it is called a consolidation loan because it consolidates all your present debts into one. One of the main features of this loan is that it comes with better loan terms such as lower interest rates and longer repayment term. Your present financial status determines the loan terms. A debt consolidation loan thus reduces the interest you have to pay and the longer loan term reduces the amount you have to pay each month to service the loan making it easier to repay.A debt consolidation loan is not an immediate magical solution to your debt troubles but it is a step in the right direction. By reducing, the number of different types of debt that you owe, reducing your interest and making it easier for you to meet up with monthly repayments, it helps you to restore your credit score as well. As long as you take your time to locate and work with the right lender and continue to make your monthly repayments on time, you will gradually repair your credit rating and would soon be able to enjoy easy access to cheaper loans in the nearest future.