Does consolidating your credit cards affect your credit
Most issuers charge a balance transfer fee of around 3%, and some also charge an annual fee.
Before you choose a card, calculate whether the interest you save over time will wipe out the cost of the fee.
The amount of your monthly payment will depend on the total amount, interest rate, and payment terms of your consolidation loan.
However, a lower monthly payment can mean a longer repayment term and more interest paid over the life of the loan.
If you’re struggling to make the minimum payments on your debt, missing due dates and not making any substantial headway in the process, you’re credit score likely already mirrors your situation.
After all, these three numbers are supposed to be the quickest snapshot of your financial health and ability to repay creditors.
Your bank or credit union may also be willing to help you consolidate, and there are some online lenders that offer consolidation loans.
(Tip: Triple check to make sure you are dealing with a reputable site if you are shopping for a loan online.