my credit score is 576 should i take a consolidation loan and clean it up?

Answer 1

Depending on what you owe... under 25% of your total income, there's no trouble.

If your debts are over 1/4 of your income, (excluding car loans or mortgages) maybe you should think about a consolidation loan.

Check out the interests rates, too !

Good luck

Answer 2

That's not enough information. If you have bad credit, you probably will have to pay high interest on any new loan, which could just make your burdens worse. Avoid small loan companies with exorbitant interest rates. However, if you can shift your debt to a lower interest, like a second mortgage on a home, that might make sense. You need to be more concerned about your actual finances than about a computer-generated score.

Answer 3

should you, why not. the real question is if you can actually take out a loan large enough to pay your debts. with that score you probably have a couple of charge offs and possible some current bad stuff. if you can find someone to give you a consolidation loan, take it. i really doubt you'll be able to get a loan to pay off all your dates.

Answer 4

no. Clean it up on your own. In the grand scheme of things, your credit isn't that bad.

I should take a consolidation loan. Mine is 340.

Yours can be fixed on your own, with out another loan which could potentially damage your credit even more.

Answer 5

If at all possible, the best thing to do is pay down your credit card balances to under 40% of their limits and continue with on time payments. If you have very few accounts, an intallment loan can help establish good credit. But dont close any older accounts, as the history helps you. "new" accoutns dont do as much to up your score.

If you're behind with your CC's, call them up and tell them exactly how much you can afford to pay them each month and ask fi they can help cut your APR or reverse recent late/overlimit fees. I once set up with a card to pay $75 a month, and tehy credited me a $35 late fee and a $38 overlimit fee, EVERY MONTH FOR SIX MONTHS. This added up to a credit of over $400 PLUS the payments i was making. They can help you if you call them. :-)

Answer 6

It might help your credit a bit but it takes time to improve your credit score, one loan is not going to make a difference, between my husband and I we have paid off 9,000 in credit card debt and loans and it hasnt done too much for our credit, the reason for this is it takes time to establish credit, you may have a good credit score and always pay your credit card bills on time but if you havent had crtedit for that long your score isnt going to improve that much.

Answer 7

if you can that would help you in the long run when you need to purchase a home. it will also help you get a higher score later on. what ever you can do to increase your scores, i think you should....the higher you scores, the better your credit line and your life would be much easier when it come to getting a loan.

Answer 8

No. If your finances aren't too out of order then don't take another loan. It won't be a quick fix on your credit score.