Does consolidating accounts hurt fico score
Plus, you’ll pay off several cards with big balances as part of the consolidation.But on the other hand, you’re probably going to end up carrying a very high balance on the new card, which is not ideal.It may be to the benefit of your credit score to leave open your credit card accounts, particularly the oldest ones.Another way your credit could suffer from debt consolidation is if you work with an agency to implement a debt management plan (DMP).If you choose to consolidate with a personal loan, you’ll likely see a jump in your score within a few months.
By consolidating with a personal loan or 0% APR card, you’ll cut your finance charges dramatically.
This will help simplify your financial life and make it easier to plan your budget.
In addition to the advantages described above, consolidating your credit card debt could also help your credit score.
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