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Question By
Flynlow922

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Personal Loan makes me close CC's
I am getting a 23k personal loan from my local credit union to pay off mine and my wife's old CC debit. They told me I have to close the 3 cards if I take the loan, I asked if I can reduce the limits to 1/2 and and replied saying I can keep 1 card.

What will closing these do to my credit and which card do I keep? Current score is very high 600's for both of us.

Card #1 10k Limit (Mine that I have had for over 10 years)
Card #2 10k Limit (Wife's that she has had for over 10 years)
Card #3 3k Limit (Mine that I have had for less then 5 Years)

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Yes, they'll be a reduction in your score due to the closure.  You'll have a new loan, and if your credit union reports to the credit bureaus, and you make timely payments, your score should be offset.

You mention old credit card debt. That's one of the main reasons they're making you close them and your debt to income ratio is probably affected. You've been wasting money paying interest. Your goal is to get a credit score in the high 700's. You should never charge more than you can afford to pay off every month. If you need a new appliance due to a breakage, that's when you apply for a new credit card with a 15 to 21 month no interest, and you get it paid off during the time frame. 

Reply by
Flynlow922

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Thats the goal, to increase my score and pay off my old debit at a lower % rate. All 3 cards have a 13% rate and this loan is 9%.

Which 2 cards should I be closing that will bebfit me the most?

How bad will closing these cards hurt me?

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