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DFH7928

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If I get a loan to pay off my debth, will it affect my credit score /
The beginning of the year I'm thinking serious about getting a loan to pay off my credit cards with some assistance from you!

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ideally it is a good idea because you don't pay as much interest 9% compared to 16% or 20%.....but the monthly payment for the single loan can be higher and some people can't afford that...also depending on your debt to income ratio the bank may reject your loan request....and of course you have the hard inquiry put onto your report for even applying for the loan....a small bump though....first calculate out what your monthly payments for the loan would be to see if you can even afford it beacuse even for $3,000 your payments will be around $260/month if your debt to income ratio is low i'd sugeest taking out a touch more to cover some of the payments back in the short run if the payments are too high to handle at first that way you use the money you need to pay off the credit cards and put say 80% your own and 20% the bank loan leftover towards the repayment of the loan preferable 10% to keep your credit score in tact....all in all still cheaper then paying off credit cards at 16-20%..........or have you thought about a balance transfer to a new card 0% for 12 months though some come with a fee so calculate out the cost of the fee for most it still works out to be cheaper but some it doesnt

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