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JumpMan123

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If i use personal loan to pay off credit cards debt. Would my credit score drop? if so explain.

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When you get a loan your score drops from inquiry(s), new account and more debt/high balance in relation to its limit. However, if you use that loan to pay down/off your credit card(s)? Your scores might be offset (some or whole) by lowering your credit card's utilizations. Despite the score drop, paying less interes and perhaps paying off your debt sooner? It's always a good thing. Scores will recover, but you won't get the interest you paid back.

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Likely will drop.

You are acquiring new debt. Don't close credit card acoounts after paid off as shortens your age of credit history.

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If your credit cards are heavily utilized, then getting a personal loan to pay them off should help your credit, not hurt it, as long as you don't close the cards.

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