Will consolidating my debt hurt my credit

will consolidating my debt hurt my credit-85

Will consolidating my debt hurt my credit

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.

The lower the utilization, the higher your credit score.

So, if you move all your unsecured debt to a secured line of credit your utilization will be 0% because you're carrying 0 balance on your credit cards.

Also, if you roll it into a mortgage or home equity loan you will likely get a lower rate than you would by leaving it on the credit cards because you're moving it from an unsecured loan to a secured loan.