My husband is considering an Unsecured consolidation loan. We have almost the same amount of debt. My Fico score is much higher than his. If he goes for a loan on his own he more than likely would need a cosigner. This is why I am considering doing this together.
Wanted to know if this will affect my FICO score. We would like to buy a house in the near future so this is why the FICO score is such a concern.
I did this two months ago to consolidate credit card debt. I also needed a cosigner. When the new loan account posted to my credit report, my score went up 3 points. When i paid all of my cc debt with the loan proceeds, my cc utilization went down to 2% and my score went from 610 to 685. It is a great idea and you will save lots of money in interest charges. It shouldn't drop your score much if at all, and it will jack his score way up -- which will help in the mortgage process. Do it.
I just thinking if I co sign a loan for him, that will be added open credit debt to my credit report and will display that nothing is being paid off with that loan on my end. It will help him tremendously but on a bit of a selfish level I would like my FICO score to stay high. Is that wrong?