Benefits consolidating bank accounts
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!
Rolling multiple credit card debts into a single consolidation loan has a lot of important benefits.
By consolidating with a personal loan or 0% APR card, you’ll cut your finance charges dramatically.
This savings can be reinvested in your debt payoff to eliminate your balance faster.
Before discussing how it could help your credit score, let’s review the non-credit perks of consolidating credit card debt.
Plus, you’ll pay off several cards with big balances as part of the consolidation.
Although consolidating your credit card debt is advantageous in a lot of ways, there are a few questions to ask yourself before moving forward: The bottom line: Among its other benefits, consolidating your credit card debt has the potential to help your credit score.
Just be sure you’ve considered all the Nerds’ points before moving forward with consolidation.
This is because, in doing so, you’re quickly reducing your credit utilization ratio.
Your credit utilization ratio is the amount you owe on your credit cards relative to the total amount of credit you have available.At Nerd Wallet, we thoroughly research financial products and companies, and adhere to strict standards of editorial integrity to find you the best choices.