Debt consolidation loan

Date: Wed, 06/23/2010 - 10:18

Submitted by anonymous
on Wed, 06/23/2010 - 10:18

Posts: 202330 Credits: [Donate]

Total Replies: 1

I need some advice on paying off a credit card with a unsecured line of credit that i have. I have a CC that has a balance of $8500 on it with a min pymt of 200 bucks. I try to pay around 250 a month on it. I can take out more on my LOC and pay it off but I was wondering how and if that would effect my credit score? The pymt difference on the LOC would be a little more than what I am already paying on the CC. The LOC is over 60 months. I am just wondering if moving the debt from revolving to installment effects my score. I know i will save interest by using the LOC and pay the balance off sooner. Any advice would be great!

Quote:I am just wondering if moving the debt from revolving to i

Quote:

I am just wondering if moving the debt from revolving to installment effects my score.

This will depend on how you will be handling your revolving accounts. That is, if you close down the revolving accounts, it can affect your credit score negatively. The credit score looks at the credit utilization ratio. It should be 30% below your credit limit. When you close an account the available credit limit lowers, and the credit utilization goes up. Thus, you will have to consider that.

lrhall41

Submitted by SC on Wed, 06/23/2010 - 23:02

( Posts: 3937 | Credits: )