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spy23714

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Consolidate or play the long game?
I'm in the market for buying a new car, but I have two credit cards with a balance that I'd like to pay off before I buy anything. The two options I'm considering are a debt consolidation loan or paying the credit cards off month by month as I can.

I'm trying to choose whichever option will improve my credit the best before applying for a vehicle loan and I'm looking for advice. Should I take the loan and pay off the credit cards and just have the one payment at a lower interest rate, or should I just continue to pay them off little by little as I get paid? My concerns obviously are the extra inquiry for the loan and the hit I'll take on the AAoA, but I've had a friend in the same predicament take out the loan and his score has improved greatly over the last 6 weeks.

Any and all advice appreciated in advance!

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Top Contributor
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Consider getting a balance transfer credit card that has 0% interest for at least 12 months (longer if possible) then transfer the credit card balances to that.  Keep all credit cards (locked up if you don't want to use them) and work on getting the balance paid quickly. I don't recommend the loan since you would be paying interest from the beginning and I prefer reducing expenses as much as possible.

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