Does consolidating credit cards look bad on your credit report?
I am REALLY bad with credit cards and have racked up about $16000.00 in debt on 3 cards and the payments are $615.00 a month. If I consolidate I can save about $300 a month but I dont want to do it if it puts a dent in my report because I have really good credit.
- Anonymous1 decade agoFavorite Answer
What type of consolidation are you talking about? Transfering all of the balances to one credit card to consolidate or a consolidation company? Consolidation company is a great way to pay off your debts and save money, but it does hurt your credit rating. I had this problem several years ago. What I did was I got a bank loan for the exact amount that I owed at a pretty decent APR. I paid off all the cards and only worried about the one payment towards the bank loan. If you are unable to get a bank loan contact the credit card company with the lowest APR and ask for a credit increase to do a balance transfer (let them know the amount.) Credit card companies are so greedy and if you are in good standing with them they will happily oblige. If the credit card company with the lowest APR doesn't oblige there are credit card companies (like Discover) where you apply for a card specifically to do balance transfers starting at 0% APR for the first 6 months or year. Definitely look into these too as a last resort.
- 1 decade ago
If you are talking about putting all of this debt on one card with a lower interest rate do it. Just remember, don't close you're old cards, just stop using them. Length of credit is important! A good rule of thumb is if you can't pay it off in one month, maybe you should hold off buying it.
- Anonymous1 decade ago
err.. so you rather pay 600 dollars and some how possiblity default resulting in a bad credit. you cant get a bad credit for lowering your bills. actually your credit will look better because you can pay your bills on time. your credit score is based on your ability to pay on time not how much you pay.