Options for consolidating credit card debt

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Balance transfer card offers with zero-percent interest rates for a year or more are available to people with good or excellent credit.You’ll need to use extra care when transferring larger balances, especially if you have less than stellar credit.It’s best to stick to loan offers from lenders that you know and trust. Keep in mind that only people with good credit are likely to qualify for a consolidation loan with a low interest rate.If you have banged up credit, you may have a tough time qualifying for a consolidation loan or you may get stuck paying a much higher interest rate.These tips will help to make a larger balance transfer as smooth as possible.Another way to consolidate credit card balances is through a consolidation loan.These tips will help you find a credit counseling agency that’s right for you.

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Knowing your credit profile before you apply can help set expectations.“There is no negative impact simply due to an account being reported as ‘paid through a debt management plan’ or similar description on an account being paid through a credit-counseling agency,” says Barry Paperno, consumer operations manager at FICO.What will hurt your credit score is if a credit-counseling agency should fail to pay your creditors.So if you’re not ready to let go of your credit cards this option may not be the right one for you.Signing up for a debt management plan will not hurt your FICO score, the most widely used credit scoring model.

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