Valued Contributor
Posts: 1,063
Registered: ‎05-26-2010
Re: Will consolidating credit cards/loans help/hurt my credit?

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 "should" 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.


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. 


Remember, for a mortgage the score is just an entry point.  You will be looked at in detail, even with a strong score.

BK7 Filed 8/11/2009 Discharged 11/23/2009. Purchased new home 4/11/2012
Starting Score:11/16/2009 EQ 566 11/16/2009 TU 538
Interim Score: 12/27/2012 EQ 683 09/17/2012 EX (lender) 670 1/01/2013 TU 701
Current Score: 11/06/2013 EQ 708 11/06/2013 EX 702 11/16/2013 702 11/06/2013 TU 729
Goal Score: EQ 740 EX 740 TU 740
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