Will you lose your credit cards if you consolidate?

16 Просмотры

Спасибо! Поделитесь с друзьями!

Вам не понравилось видео. Спасибо за то что поделились своим мнением!

Издатель Mar 20, 2024

In most cases, you don’t need to close your credit cards if you consolidate credit card debt. If you use a bank, credit union, or non-profit debt relief company, they they may require you to relinquish your cards until you get out of debt. But, most lenders will not make that requirement.

By consolidating your credit card debt, you are moving the balances on those cards to a personal loan. This means that your credit card utilization drops to zero, but your limits don’t change. You can definitely use those cards the same way you could before. So, if credit cards are essential to your day-to-day financial life, consolidating your credit card debt won’t mean you can’t use your cards anymore. The only exception to that rule is if you consolidate with a financial institution that requires you to relinquish your cards as a condition for being approved. This can happen, but most lenders will not require it.

If you accumulated your credit card debt because you struggled to control your spending, you might want to close them anyway in order to make sure you don’t run up more debt. But, if you feel comfortable that you can control the use of those cards, keeping them open can help your credit score over time.

For more information about personal finances and for access to financial services and products, visit www.TheYukonProject.com.

#creditcarddebt #creditcards #debtconsolidation