Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Credit Cards
Profile Image

Question By
Bkapchin

0 Contributions
0 People Helped
Should I close credit card accounts before I apply for consolidation loan?
Every time I try to apply for a consolidation loan I am told my debt is too high and I do not qualify, my debt is about $8000

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Results 1-2 of 2Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
675 Contributions
353 People Helped
Most Helpful Response

Helpful to 1 out of 1 people

Jwsister is correct.  If you close your accounts with a balance on your credit cards you will hurt your score and it would be much harder to get a loan.  You need to pay down your loans.  I dont know much about Dave Ramsey but I do hear that, that is a good way to go.  I would also suggest not carring a balance.  Credit cards are just loans and not extra money.  It is important to always remember that. 

Now with that said in general credit companies don't really like to loan money to people who need it (Again high utilization) So you might need to pay down your cards till your under 50%  If you have more then one card then pay down the one with the highest interest.  This is costing you the most money. 

Top Contributor
7344 Contributions
3805 People Helped

Any time you close a credit account, you hurt your credit score.  Please re-read the articles provided here so you can refresh your memory.  And, apparently your income is not very high, which might be why you are being denied.  In that case, I do suggest searching for Dave Ramsey's site and follow his advice on debt repayment.

Results 1-2 of 2Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.