I would be more concerned about the cost of using a 2nd to pay cc debt than what it would do to your score. Things to consider:
>Cost of getting the loan. There are fees and closing costs.
>Getting a 2nd that is tied to prime can get very expensive depending on the economy.
>If you use the full term to pay off the 2nd - say 10 or 15 years, you can end up paying a lot more in interest, even if the loan itself is at a lower rate than your cards.
>Having zero balance on your cards can be very tempting. A little here, a little there. Some people end up with a 2nd mortgage AND a bunch of new cc debt.
>If you want to sell your house, you will have to use the proceeds to pay off both loans, usually leaving you with very little cash left over. Not good if you want to buy a new home, don't have enough for a 20% down payment, and end up having to pay PMI.
>Speaking of selling your house, if the real estate market is bad, your house will be worth less, and you could possibly end up 'upside down' when selling.
>If something happens and you can't make the payments, your HOME is in jeopardy.
I (obviously) think there are much safer ways to pay off that debt and increase your score at the same time.
