Consolidating debt hurt credit Free sex talk facetime chat
First and foremost, consolidation could save you big bucks on interest payments.
As of July 2014, the average credit card interest rate is hovering around 15%.
Before discussing how it could help your credit score, let’s review the non-credit perks of consolidating credit card debt.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.Only having to make one monthly payment is also super convenient. When taking out a consolidation loan, you may see an initial dip in your credit score because applying for a loan generally results in a hard inquiry into your credit report.There are multiple options for debt consolidation (more on this in a bit), but if you stick to a well-thought-out payoff plan, a new lower-interest loan is a viable way to pay off high-interest balances in one shot. For example, one common question about the tactic is, “Does debt consolidation hurt your credit score? “The degree to which they have a negative impact depends on how many inquiries you have over a specific period of time,” says Bruce Mc Clary, spokesperson for the National Foundation for Credit Counseling.