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Posts: 1
Registered: ‎09-23-2012
Will consolidating credit cards/loans help/hurt my credit?
[ Edited ]

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 "FAQS" 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.