Consolidating credit cards credit score

Consolidation works best when your ultimate goal is to pay off debt.

The four most effective ways to consolidate credit card debt are: This type of credit card charges no interest for a promotional period, often 12 to 18 months, and allows you to transfer all your other credit card balances over to it.

You can use that money to pay off your credit cards or other debts.

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Online lenders typically let you pre-qualify for a debt consolidation loan without affecting your credit score.» MORE: Pre-qualify on Nerd Wallet and get a personalized rate Pros: Back to top If you’re a homeowner, you can take out a loan or line of credit on the equity in your home.A home equity loan is a lump sum loan with a fixed interest rate, while a line of credit works like a credit card with a variable interest rate.» MORE: Nerd Wallet’s best balance transfer credit cards Pros: Back to top You can use an unsecured personal loan from your local bank or credit union or an online lender to consolidate credit card or other types of debt.The loan should give you a lower interest rate on your debt or help you pay it off faster.

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