I'm selling my car this week, which will pay off the loan a year early.
I have about ,000 in credit card debt on 2 cards that I want to consolidate.
If your credit is already in the crapper, you cant go much lower.
But if your accounts are all current now, your score will take a major nose dive.
Unfortunately consolidating debt does hurt a borrower’s credit score.\n\n Linda Jacob is a Certified Financial Planner ® and an\n Accredited Financial Counselor ®.Linda\nbegan working in the banking industry while in high school.One of the most important is, “does debt consolidation hurt your credit score?” To answer that, you need to understand how credit reports and credit scores work.I have three credit cards with balances of over 00. Consolidating your credit card debt won't hurt your credit score if you don't close the cards.One of the cards is new (within the last year) and the other two are more than 4 years old. You want to leave them open, at a zero balance, so that you keep the history. I have had SEVERAL clients who have gotten a consolidation loan, paid off their credit cards, and then charged them back up again!Instead of the consolidation loan being a blessing, it becomes a burden because they had doubled their debt.Put the cards in a safe deposit box, or freeze them in a huge bucket of ice, but keep them out of reach...But credit scores can always be corrected over time, and consolidating debt may be necessary to ensure a healthy financial future.If borrowers are struggling under the weight of their current debt and monthly bills, they shouldn’t hesitate to seek help through debt consolidation simply due to credit score concerns.