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Can Consolidating My Credit Card Bills Affect My Credit?

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Mark Cappel
UpdatedNov 30, 2009
Will consolidating my credit cards negatively affect my credit scores?

I want to lower my interest rate. Can I consolidate my credit card bills to lower my interest rate without it negatively affecting my credit rating?

I cannot say with certainty that your credit score will not be negatively affected if you consolidate your credit cards. When you say consolidating I assume you mean that you will be obtaining a new loan to pay off your current credit cards. It may be safe to say that if it does negatively impact your credit scores it may do so minimally. There is no logical reason to assume that your credit scores would drop extremely because of consolidating your credit cards. Normally, severe drops in credit scores are due to defaulting on payments, closing out accounts, filing for bankruptcy, foreclosure, accounts that go into collections, and more. I do not think that consolidating your credit cards, and the impact it will have on your credit should be of too much concern. That is unless you are in the process of refinancing or buying a home or a car.In those situations a minimal fluctuation in a credit score can impact the interest rate and possible qualification for obtaining the loan.

To find out more how your FICO score is calculated I recommend you read an article I wrote explaining FICO Score Calculation. This should give you a much clearer understanding of how credit scores work.

I hope this information helps you Find, Save, and Learn.