Consolidating credit card debt impact credit score

It can be a viable way to help pay down your debt and even save some money in the process.

So what happens to your credit if you consolidate your debt with a debt consolidation loan?They require you to get a loan from a bank, credit union, or peer-to-peer lender who will agree to consolidate some or all of your debts (usually credit card balances) into one new loan.If the interest rate on this new personal loan is lower than the interest rates on the different credit cards that you are consolidating, you'll save money.Debt consolidation with P2P lending awards the borrower with reasonable interest rates, flexibility to pay off the debt, and higher chances of approval- even with not-so-perfect credit.When you use credit card balance transfers for debt consolidation, you are basically shifting the total debt from several of your cards to just one that has a much lower interest rate.

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