Consolidating credit cards good or bad
The interest rate depends on your credit profile, and it usually doesn’t change during the life of the loan.Debt consolidation is only one of several strategies for paying off debt.Your credit scores can take a hit if you use all or most of the available credit on your cards.A personal loan balance is reported as installment debt, which is treated differently in credit scoring formulas than revolving debt such as credit cards.Nerdwallet has reviewed more than 25 lenders to help you compare and choose one that’s right for you.Below is a list of Nerdwallet’s top lenders for debt consolidation. If you’re borrowing money to pay off debt, a personal loan works best if you have a plan to tackle your debts.Look for a site that offers educational tools such as a credit score simulator or guidance on how to build credit.
Fixed payments ensure you’ll pay off debt on a set schedule.
Borrowing limits are typically higher; some lenders offer loans of ,000 or more.