New live cam chat sexy - Does consolidating credit card debt affect your credit score

If you make use of a balance transfer offer and move all your balances to a new credit card, you will immediately increase your total credit limit.

Using the example above, let’s say you transferred your three credit card balances onto a new card.

does consolidating credit card debt affect your credit score-39

When you’re ready to get out of debt, sometimes it’s hard to know which path you should take.

For some people, debt consolidation will be the best option because it can allow you to group all your debt together, thereby making it easier to manage your debt – and in some cases lowering your monthly payment and interest rate at the same time (see our article on how debt consolidation works).

A bigger concern than the hard credit inquiry is how the debt consolidation might affect your credit utilization.

The phrase “credit utilization” simply means the percentage of your available credit that you are currently using.

After all, paying off your debt will help improve your credit score in the long run and save you plenty of money in interest and fees!

——— Hopefully the information above is helpful not only in answering the question “does debt consolidation hurt your credit score?

The hard inquiry will lower your credit score by a few points and stays on your credit report for two years.

However, this small hit to your credit is not necessarily a reason not to do debt consolidation.

” To answer that, you need to understand how credit reports and credit scores work.

Tags: , ,