Consolidated debts....what should i do, and what will happen?

Question

I consolidated this credit card that i maxed at 5,000, and I consolidated two other cards one was 800.00, and 500.

Before i consolidated the three cards i was current and On TIME, but it was a deep HOLE in my pocket so I consolidated and took my interest rates from 15% to 4%, and I have been paying on time for a little over a year. I am getting an AwesoME christmas bonus from my job, and plan to pay off my debts after NOV.1.

so what I am asking is:

Will my credit score go up after paying down debt by 60%,(because I know its good to have a little debt!) or because its consolidated it will still look bad! i recent learned consolidating isnt a good thing to the credit people!

i plan to keep my credit cards open after their paid

Answer 1

It isn't looking good according to lenders when they see this, but it's a lot better than late payments and going into default!

On the scale for negatives in your report, Going into default or into a charge-off is a -9! A consolidation is considered
a -5. so your still better off!

You see, creditors would like everyone to pay perfectly, but in the real world this doesn't happen. However, creditors seeing you consolidate your loans before your in real trouble is a plus and maybe you just got in a little over your head temporarily.

Point is, it's not the end of the world and it won't keep you from establishing good credit from here on out. If you paid off your obligations under the terms of your consolidation by the end of the year, your creditors will see you as someone who took the responsibility seriously and met your obligations!!!!

Look, go to the website below and read it all! This site is a really good one about credit repair and you could even use their help challenging your negatives in your credit report! Wait 6 months after paying off all your balances before doing this and I'll bet you could come out on top of this1

Get the RSS feed to this site and you'll be on top of all new information as it's being added. Your doing well so far! Especially read the section called "how credit scoring works".

Answer 2

Pay the debt. Even at 4%, why pay the interest. Is this another credit card or loan. Did you close those 3 credit cards when you paid them off?

You want to have some revolving accounts. You don't have to carry balances on the credit cards. Just keep them in good standing. Use them and pay them in full every month.