Consolidation Loan

[FICO800PLUS]

Hello!

This is my first post.  So here it goes...

I decided to consolidate my credit cards with a loan from a local credit union.  I had eight credit cards all with balances.  All were paid in full except the visa that I have with that credit union.  My question is... what will this do to my credit score? 

[marty56]

That is a complex question which is based on how the new loan is being reported and what the balances/CLs were on the cards you paid off.  You have fewer cards reporting a balance so that could cause an increase in your FICO score but the new account could offest some if not all of it.  As long as the consolidation loan saves you money and you do not run the other cards up and you get out of debt quicker, I would say that the effect on your FICO score is not relavent.  Do not use the PIF'd cards again unless you PIF the balances each month.

[FICO800PLUS]

Thanks Marty56...

Each cc was between 50 to 60 percent utilization.  Pretty high!  Hopefully, this loan with help my credit scores but regardless, it will help keep some money in my pocket.  Good advice about the PIF each month on any credit card that I use again! 

[MarineVietVet]

---

@FICO800PLUS wrote:

Thanks Marty56...

Each cc was between 50 to 60 percent utilization.  Pretty high!  Hopefully, this loan with help my credit scores but regardless, it will help keep some money in my pocket.  Good advice about the PIF each month on any credit card that I use again! 

---

It is easy to end up putting large balances on your CC's again and have those to pay off plus the new loan which makes the debt even larger than before. I've been there and done that. 

(myfico)
7/09 TU-742 EQ- 779
8/09 TU-765 EQ- 783
9/09 EX pulled by lender 802

CC interest free as of 8/09
Time can heal all wounds and a low FICO.
"Hello my name is Sandy and I'm a recovering crediholic".

[creditwherecreditisdue]

---

@FICO800PLUS wrote:

Hello!

This is my first post.  So here it goes...

I decided to consolidate my credit cards with a loan from a local credit union.  I had eight credit cards all with balances.  All were paid in full except the visa that I have with that credit union.  My question is... what will this do to my credit score? 

---

It should work wonders for your FICO scores. Why don't you post a before and after score for us?

[defserv]

You may see a score increase there.. I hear installment debt has a less effect on fico than revolving. goodluck

[FICO800PLUS]

It should work wonders for your FICO scores. Why don't you post a before and after score for us?

Hi creditwherecreditisdue..... 

Will do!