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Consolidating credit card payments hurts credit rating?
I have the option from one credit card company to pay off my
other two credit cards at no transfer fee, and charged for the higher balance
at my normal yearly rate.
I would do this, ONLY, for the sake of convenience(one payment instead of three).
But somewhere I might have read that this type of transaction,
(consolidating credit card payments into one)
might hurt my overall credit rating, which is now over 750 at the three credit rating agencies.
Is my memory of what I read mistaken, and/or should I leave well enough alone?
Thanks for any and all advice.
To the three who have answered so far:
I am 67 and retired on a tiny S.S. retirement check as sole income.
I have only used one fifth of my available credit line on all three cards.
I'm trying to be frugal but I also want to enjoy the last few years I have left
so I can't pay off all debt at the end of the month.
What I'm doing, basically, is living off future S.S. income to pay off
new debt.
I can't see doing it any other way if I want to have any type of life at all.
Anyway, thanks all for taking the time to write.
3 Answers
- Go with the flowLv 79 years ago
Saving money vs. hurting your credit.
Saving money, always wins !
Do the balance transfer.
Make a plan to have that credit card debt paid off ASAP.
Carrying balances on credit cards can seriously harm your score.
Do not close the other cards unless they have an annual fee.
This will leave your overall available limits high.
Creditors like to see cash unused. Shows credit worthiness.
Once you pay off this card use credit more wisely.
Charge small things you need like food or gas and pay in full each month.
This develops great credit and you never pay interest.
Most important, stop charging on credit until you have this paid off.
- Anonymous9 years ago
Only would harm your rating if you were taking out an IVA to pay the debts.. which you are not.
Many myths circulate regarding credit rating, if you were to Consolidate using another credit method it would not hurt your rating, as long as you are within credit limit and make regular payments (more than the minimum).
To be honest, paying it off is the best idea, I cleared all my debt last year and it feels great!
- Rick BLv 79 years ago
Why move the money around? You should never carry a balance on a credit card, yet alone three of them! You should onl charge wht you can pay ZIN FULL when the bill arrives.
Instead of playing games ith debt, I'd recommend you pay these off. Stop using your cards, and pay them off.
