Consolidating credit cards credit score
You could possibly save on interest payments too, since credit cards tend to come with higher interest rates than personal loans do.Credit card consolidation could improve or hurt your credit depending on how you use it.
On the other hand, taking on a new loan, in general, could cause a short-term drop in your credit score because of the hard inquiry.
A personal loan is another common way to consolidate.
Once you’re approved, the lender deposits the money into your bank account, letting you pay off all your balances at once.
Another common mistake that can take a toll on your credit score is if you you pay off with your consolidation loan.
If you close the credit cards you pay off, you reduce your available credit, which could increase your credit utilization ratio (a.k.a.