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Question By
stephenwithav

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Would consolidating my credit card debt into a loan boost my credit score?
My credit score is currently 675 and my goal is to get over 700.

The only accounts/debts I have so far are credit cards (average age, two years, nine months). I can pay off the majority, if not all, of my credit card debt this month or the next. Or I can consolidate my loans through a service recommended by CreditKarma, which may diversify(?) my debts.

Of the two, which option will be most likely to help me achieve a 700+ credit score? Which is the best long-term option?

(CreditKarma's score simulator says paying the majority off ($5k decrease) will boost my score to 691, while paying them off entirely will put me at 683.)

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Don't take the "recommendations" Credit Karma offers, those are just ads.  Consolidation won't really do anything for you, you're just moving debt around.  To learn the best ways to boost your credit score, I suggest going to www.credit.about.com and read their articles.  You're well on your way, just keep paying bills on time, pay down your debts and don't close any credit cards.  Best of luck to you!

Reply by
stephenwithav

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Thank you for the about.com resource and for letting me know that consolidating into a loan wouldn't benefit me.  I will continue paying everything down and monitoring my score to watch for changes.

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