How does consolidating credit debt effect a credit rating?

[Clarinda Della]

I am familiar with consolidating credit debt. You are right, pay it all off faster at a lower interest rate. First, once you've paid off all the debt, leave the cards OPEN. That is the major problem people have, they cut up cards that have high limits and that have been open for years. Do not do that. Leave the accounts open and just cut up the cards if you cannot control yourself enough to not use it. Other than that just keep it to a normal amount 5-10. I prefer the double miles cards or cash back cards. Just keep paying the bills on time. Best of luck.

[clydewolf]

You may want to put an automatic monthly (or other period) charge, like cellphone, tv cable, etc on that paid off account. Then as Clarinda Della says, remember to make that monthly payment. This will keep the account active and the account will be less likely to be closed.

[Elmira Nancy]

As long as the accounts are paid on time and according to the original cardholder agreement, consolidation will not affect your credit rating. If you go through a credit counselor where they negotiate lower rates, yes it will affect you. But if you just get a loan or use a lower interest rate card to transfer higher interest rate balances to, that will not affect your rating. The greatest effect will be the percentage of your total credit that you are using. So paying them off or paying them down will increase your credit score.

[Savinforthefurture]

If you go through a company it is affected. If you do it yourself, it doesn't affect it.