I heard it looks bad on your credit. Is that true?
2007-01-09 13:22:31 · 4 answers · asked by Kisses 2 in Business & Finance ➔ Credit
Its a very good idea if you get one of those special offers that you pay very low interest on. In the long run, it is not your debt that gets you but the interest you pay on it.
On the other hand, it always looks better on your credit report if none of your cards have balances above 50% of the credit line. So if you will save a considerable amount of money, consolidate. If the interest rates are about the same, spread it out.
2007-01-09 14:39:43 · answer #1 · answered by Rani 4 · 0⤊ 0⤋
It depends on if you consolidate your bills and run your credit cards back up or not. If you run your cards back up then you're being hit on your report b/c your debt ratio is off.
It depends on if the interest rate for the consolidation loan out weighs the interest rate on your current loans.
If you're using your house as collateral for a consolidation loan---BAD IDEA all the way around.
2007-01-09 21:28:46 · answer #2 · answered by bundysmom 6 · 0⤊ 0⤋
As long as you don't do it through a debt consolidation company. Those do not look good on your credit.
2007-01-09 21:38:56 · answer #3 · answered by Jen G 5 · 0⤊ 0⤋
It doesn't really matter whether you have one debt or twenty... your total debt is your total debt. Just don't consolidate and then cancel your credit cards or you are getting rid of your history. It's okay to pay them off but don't cancel the cards, just cut them up and leave the accounts in tact. There are many factors that go into your credit score... history, debt to income, balance to limit, and ratio of installment to credit card accounts. Credit isn't bad... debt is.
2007-01-09 21:28:32 · answer #4 · answered by Anonymous · 1⤊ 0⤋