Consolidating Credit Cards - How Will It Affect My Credit Rating?

Reader Question: I'm wanting to consolidate some of my credit cards. How will that impact my credit rating?

In some cases, it won't have much of an impact at all. In other cases, it could lower or raise your credit score by varying degrees. It depends on the method you use to consolidate your debt, your overall financial picture, and other factors.

I've gathered some previous Q&A sessions below to help you understand the connection between debt consolidation, credit cards, and your credit score:

How Does Debt Consolidation Affect My Credit Score?
This is nearly the exact same question you have asked, so it's worth a read. It explains some of the pros and cons of consolidating credit card balances, and other things you should think about before making a decision.

Will Debt Consolidation Help Me Get a Mortgage?
Yes, consolidating your credit card debt can be an effective financial move in general, and it can also help you qualify for a mortgage loan down the road. Most importantly, it can help you improve your life by (A) reducing the excessive accumulation of interest and (B) giving you a path to a debt-free life.

The FICO Scoring Chart
While you're at it, you might want to give this article a quick perusal as well. This will help you understand the key factors that determine your FICO credit score (the one most commonly used by lenders). It will also help you understand the other Q&A sessions I've provided above.

Here's the bottom line. If you consolidate your balances in a way that pays off 100% of what you owe (and if you continue to make your bill payments on time), it should have little to no impact on your credit rating.