whitney port dating ben - Does consolidating debt hurt your credit

My credit score is low due to high credit card debt-to-income ratio.

I have a mortgage in good standing, but am looking to refinance in six months to a year.

You certainly need to find a way to reduce your credit utilization – the amount you have borrowed compared to your credit limits – as this is the second most important factor in credit scoring calculations.

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Once you have decided which avenue to take to pay off your credit card debt, you will need to consider how you will deal with your credit moving forward. Monday through Saturday, Credit Cards.com's Q&A experts answer questions from readers.

As you work to build your credit up, remember that on-time payments are crucial. Ask a question, or click on any expert to see their previous answers.

You can find personal loans from banks, credit unions and online lenders.

Your credit may be a factor when the lender determines your eligibility and the interest rate on your loan.

Pros: The interest rate could be lower than your credit cards’ rates, and you may have several years to pay off the debt.

Cons: Some lenders charge an origination fee, which could make this a costly option if you’re consolidating a lot of debt.You will, however, have to consider a few things: With that in mind, whatever route you choose, you need to be fairly certain that you will qualify for the debt consolidation loan or balance transfer.This goes back to what I was saying about hard inquiries.However, you do need to know that applying for a debt consolidation loan will trigger a hard inquiry to your credit report.This could bring your credit score down a few more points in the short term.Depending on your situation, you might also look at transferring your credit card balances to a zero-interest credit card.

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