Will using a personal loan to consolidate cc debt negatively impact my credit score?
Dec 30, 2008 Debt Consolidation
I find myself in a bit of a pickle. My credit cards have high balances. Both cards combined total $23,000 (17,000 on one at 19% interest and $6,000 on another at 18% interest). While I try to pay more than the minimum due each month, I find myself unable to pay them down…..life has been getting in the way. I've contacted the cards and they refuse to lower my interest rate. I have thought to apply for a personal loan to consolidate this debt (hoping for a much lower interest rate than the cards offer) but I'm not sure if this is the best solution. I would like to be free of this debt within 3 years. However, I'm nervous to do anything that might negatively impact my credit score. My score is already lower than it should be b/c of the high credit card debt. I have established credit and have a history of paying bills on time but my score fluctuates b/w 550-565 b/c the cards have reached their limits.
I need to revise my last statement b/c I saw an error. I am looking for a way to quickly eliminate credit card debt. I have two cards that are maxed out (totaling $23,000). This high debt is keeping my credit score at 650-665. My score should be higher b/c I have a history of paying my bills on time. I would like to eliminate my debt within 3 years so I can move forward and one day purchase a home. The cards will not lower my interest rates which are at 18-19%. I try to pay more than the minimum as often as possible but I feel like I am getting nowhere. Also, it's impossible to put any money into a savings account and paying extra on the cards. Will a personal loan help with my problem or is it a bad idea? I'm reorganizing my finances so that I can be debt free and ready to purchase a home within 3 years.
If you always pay on time you should a better credit score, but consolidate your debts will no affect you credit score.
You will have to be very careful, because usually people who consolidate debts do ok in the begining but in a while they start to use their crdit cards again and find themselves paying the loan and the credits cards.
If you have decided to do this, try to include everything you owe, not just credit cards, you can do that, for example:
You can consolidate
…credit cards
…loans you actually owe
Before doing all this RESEARCH al least 10 institutions to refinance, have it all in writing.
You can too apply to a credit card that offers a low interest, and move your balances to that one.
Go to http://www.refinancemortgagebrokers.com/refinance.asp
to see how much you can save consolidating you actual payments…
Good luck
