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bnb78

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Is a Loan an Ideal Way to Consolidate and Eliminate Credit Card Debt
Will taking a loan to consolidate your credit cards have a negative or helpful impact on your credit score.

This of course presumes you do not go and run up the cards again.

My husband and I were curious - the thought was the score would increase as your utilization decreases - but we also thought, maybe it is just seen as swapping one debt for another.

At the end of the day, the savings in interest may just be enough to sway us.

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It's hard to say, because every person's credit profile is different. A personal loan is a different kind of credit, so it will diversify your history. That's a good thing. It also will increase the total credit available, which will have a positive impact on your utilization rate. You will get dinged for the hard pull of your report while applying, though. Generally speaking, if you can get a good interest rate and you commit to paying off the loan and not putting anything back on the credit cards, then it might be a good idea for you.

It goes without saying, you should limit the use of your credit cards moving forward. Try to keep your utilization under 20% of the credit limit(s) available and make sure you pay all bills on time and for the agreed upon amount.

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