If you’ve fallen behind and have been making late payments on your credit cards, consolidating them to one monthly payment could raise your credit score as your payment history improves.On the other hand, taking on a new loan, in general, could cause a short-term drop in your credit score because of the hard inquiry.It is important to look objectively at your state of financing to see what offer may bring you most benefits.
There are a few ways you can do this, including a balance transfer, a debt consolidation loan, a personal loan or a peer-to-peer loan.
You can learn more about your options in the guide below and decide which one is right for you.
As more and more people find themselves drowning in credit card debt, many seek consolidation options to lower the debt burden.
Despite common opinion, debt consolidation is something you can do yourself without need to use debt consolidation agencies.
You could possibly save on interest payments too, since credit cards tend to come with higher interest rates than personal loans do.
Credit card consolidation could improve or hurt your credit depending on how you use it.Hi, I’m April Lewis-Parks, Director of Education at Consolidated Credit.Today we’re answering a consumer question and the question is, “How much debt is too much?Credit cards, while convenient, make it easy to get into and stay in debt.If you have debt across multiple credit cards that you’re repaying, you may be able to reduce the interest and fees you’re paying by consolidating them into one account.It won’t prevent you from getting credit in the future, but for a time some credit products will be unavailable to you and others will come at very steep prices.