What is the relationship between debt consolidation and credit report? When people accrue debt on their credit card it will negatively impact your credit score, which you, and others, will see on your credit report. If it is the case that you cannot pay off your credit card bills and other debts, not just the monthly interest charges, that you should look into debt consolidation. Debt consolidation can help you handle your debt and make it possible for you to handle your debt payments better, which will improve your credit score. Debt consolidation is available for people who have bad credit as well.