Does consolidating accounts hurt fico score
Rolling multiple credit card debts into a single consolidation loan has a lot of important benefits.Before discussing how it could help your credit score, let’s review the non-credit perks of consolidating credit card debt.Only having to make one monthly payment is also super convenient.When taking out a consolidation loan, you may see an initial dip in your credit score because applying for a loan generally results in a hard inquiry into your credit report.
If you’re not sure how consolidating your credit card debt will affect your score, take a look at the details below – the Nerds will tell you everything you need to know!
This will help simplify your financial life and make it easier to plan your budget.
In addition to the advantages described above, consolidating your credit card debt could also help your credit score.
This savings can be reinvested in your debt payoff to eliminate your balance faster.
Another advantage to consolidation is that you’re moving from multiple monthly debt payments down to just one.