Does consolidating debt hurt your credit score
If you’re carrying debt on several cards with this interest rate, you might be shelling out hundreds every month in interest.
By consolidating with a personal loan or 0% APR card, you’ll cut your finance charges dramatically.
And while you’ll hopefully say goodbye to student loan debt, you may need to qualify for a loan, credit card, or other financial product in the future.
Home mortgage, auto loans, insurance rates, and even employment interviews all depend on your credit score.
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Please do your homework and let us know if you have any questions or concerns. This helps pay for our amazing staff of writers (many of which are paying back student loans of their own! Whether you’re buried with over 0,000 of student loan debt or in the home stretch of repayment, you’re likely thinking about your future.
This will help simplify your financial life and make it easier to plan your budget.
In addition to the advantages described above, consolidating your credit card debt could also help your credit score.
If you’re not sure how consolidating your credit card debt will affect your score, take a look at the details below – the Nerds will tell you everything you need to know!Your credit utilization ratio is the amount you owe on your credit cards relative to the total amount of credit you have available.It heavily influences a whopping 30% of your credit score, and if you have several maxed-out cards, yours is probably sky-high. And while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward — and free. There are a lot of benefits to this move, including the potential to give your credit score a boost. We believe everyone should be able to make financial decisions with confidence. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. " Dealing with debt on multiple credit cards is stressful, which is why many people consider consolidating their several debts into one.
First and foremost, consolidation could save you big bucks on interest payments.