Credit card for consolidating
Pros: The interest rate on home and auto loans may be lower than on credit cards, partially because they’re secured loans.Also, the mortgage interest payments can typically be a tax write-off (up to a certain amount).
You can find personal loans from banks, credit unions and online lenders.
A: If you’re able to lower your rates or your payments by consolidating, you may be able to pay more of your balance each month, which can be one good way to improve your credit.
But it’s important to know that opening a new credit card account to transfer a balance does create a “hard inquiry” on your credit report, which might lower your score a little. Consider talking to a qualified professional about your options.
Cons: You may need good credit to qualify for a low interest rate.
You’re also taking on secured debt in exchange for paying off your unsecured credit card debt.