Does consolidating credit cards affect your credit score

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Lower credit scores mean higher interest rates, which means that finding a consolidation loan with a lower rate (and qualifying for it) might just not be in the cards. Follow all of this advice, and you should be able to figure out if loan consolidation is a good option for you.Jeanne Kelly (@creditscoop) After being turned down for a mortgage 15 years ago, Jeanne Kelly realized she needed to get her credit in order.She’s also been kind enough to share her insights with us on many different occasions.

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If you have personal loans, find out if there’s an early repayment charge attached to your agreements.“If the interest rate is five percent or less, put that debt to one side and continue chipping away at it.If you’re not able to meet even just your minimum repayments, you are spending more than you should and have to address that immediately.Write down a budget, pause any non-essential spending, and investigate getting a second job; that’s how serious not being able to cover your minimum repayments is.Only take this consolidation route if you are confident you can remain disciplined and change your spending habits once you’ve combined the applicable debts.“Never, ever switch debt simply to have it with one lender because you think it makes it more manageable; that’s a falsehood and will cost you so much more in the long-run.That attitude will lead you into accruing further debt, snowballing additional borrowing on top of the debt you’ve already consolidated, bringing you back to square one.”If you already have not-so-great credit—and have taken out the bad credit loans to match—then you are going to want to think long and hard before pursuing debt consolidation.

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