http://ficoforums.myfico.com/t5/General-Credit-Topics/Will-consolidating-credit-cards-loans-help-hurt-my-credit/m-p/1604682#M166648 <p>Just don't close, but don't use the credit cards you consolidated.  That will give you low utilization, because an installment loan isn't counted against utilization.  That &quot;should&quot; help your score.  The best score comes from having less than 10% utilization but at least one, but less than half the cards showing a balance.  You may want to rotate which card you let show a balance each month so lenders don't close any.</p><p> </p><p>759 is a great score already, congratulations!  From what I understand, 740 gets you the best mortgage rates.  Reducing your payments by $500.00 a month helps your Debt to Income (DTI) ratio which mortgage lenders will look at. </p><p> </p><p>Remember, for a mortgage the score is just an entry point.  You will be looked at in detail, even with a strong score.</p> Sun, 23 Sep 2012 16:45:05 GMT chasmith 2012-09-23T16:45:05Z http://ficoforums.myfico.com/t5/General-Credit-Topics/Will-consolidating-credit-cards-loans-help-hurt-my-credit/m-p/1604630#M166647 <p>Two weeks ago I decided to consolidate all but 1 of my credit cards, it will be paid off within 2 months, and 2 loans into 1 loan. I did this based on everything I read stating it would HELP my credit. I got a much lower interest rate on the loan and will save $500 a month in payments by consolidating too. Today I read some of the &quot;FAQS&quot; here with myFICO and one stated that opening up 1 account and paying off several others could possibly HURT my credit because basically I am keeping the same amount of debt just moving it around. Does anyone know if this is true? I figured paying off credit cards, not closing them, and having a loan instead of high credit card balances, AND saving me $500 a month in payments would help my score? Now I am a little worried as I have a score of 759 now but my goal is to INCREASE my credit score not lower it so I can get a mortgage in the near future.</p> Sun, 23 Sep 2012 15:59:56 GMT http://ficoforums.myfico.com/t5/General-Credit-Topics/Will-consolidating-credit-cards-loans-help-hurt-my-credit/m-p/1604630#M166647 thytaysmom 2012-09-23T15:59:56Z http://ficoforums.myfico.com/t5/General-Credit-Topics/Will-consolidating-credit-cards-loans-help-hurt-my-credit/m-p/1604682#M166648 <p>Just don't close, but don't use the credit cards you consolidated.  That will give you low utilization, because an installment loan isn't counted against utilization.  That &quot;should&quot; help your score.  The best score comes from having less than 10% utilization but at least one, but less than half the cards showing a balance.  You may want to rotate which card you let show a balance each month so lenders don't close any.</p><p> </p><p>759 is a great score already, congratulations!  From what I understand, 740 gets you the best mortgage rates.  Reducing your payments by $500.00 a month helps your Debt to Income (DTI) ratio which mortgage lenders will look at. </p><p> </p><p>Remember, for a mortgage the score is just an entry point.  You will be looked at in detail, even with a strong score.</p> Sun, 23 Sep 2012 16:45:05 GMT http://ficoforums.myfico.com/t5/General-Credit-Topics/Will-consolidating-credit-cards-loans-help-hurt-my-credit/m-p/1604682#M166648 chasmith 2012-09-23T16:45:05Z