Consolidation Loans Cause Bad Credit?
Would a personal loan cause bad credit if the reason was for
consolidation of credit cards. Would it matter if you change the reason
for the loan?
Getting a personal loan and being accepted for it will be reflected on
yout credit history. What it will do to your credit score ... I don't
know, it depends on what kind of score you have now, I guess? You may
need some expert advice before you do anything, but even expert advice
is just that... another person's opinion, not realy knowing your
particularly financial history with your debts.
One thing to keep in consideration, is a loan will only be a trade off
for one set off debts to another and what got you into credit card debt
is a personal issue you may look at changing. If you choose to
"consolidate" which is what you are doing with even a personal loan (I
guess from your bank) stop using the credit cards by getting rid of
them, (except for one and don't use it) while you are paying off the
loan.
I for one did not get loans, consolidate or try debt negotiating or
anything, I made a disciplined plan to pay off all the credit card
debts with a system much like a the snowball plan. It actually become
fun after awhile to see each one shrinking away.