Forums
I would like to cut back on the number of credit cards I have. So I was thinking of getting a bill consolidation loan from my credit union to pay them off and then cancle the ones with high rates and keep just one card for emergencies but I have been working on building my credit score to buy a house and don't want to lower my credit score
bill consolidation loan
Hi sixemeralds,
Welcome to this community :)
No getting a bill consolidation loan does not necessarily hurt your credit. However, if you need to apply with several lenders there can be various hard pulls which inn turn can lower your credit score.
Another thing is that canceling cards can hurt your credit score too. This is because when you close down your accounts the credit utilization rate increases in comparison to the available credit.
Also during consolidation you should try to lower the card usage to minimum. Else there's no point consolidating you debts as the debt will go on growing if you continue charging your cards.
Thanks,
Aaron