Credit card debt can be overwhelming, stressful, and can lead to poor financial health if left unchecked. High credit utilization and holding too many cards at once hurts your credit score, which can make balance transfer cards a risky solution to pay off debt.
If you are looking for the best way to pay off credit card debt without hurting your credit score, a debt consolidation loan may be right for you.
Why Choose Debt Consolidation Loans?
Combining your credit card debt into one large sum simplifies your finances and makes repayment less complicated with single monthly payments. With fewer credit card bills due each month, you reduce the risk of late payments. Unlike balance transfer cards, a personal loan for debt consolidation can help improve your credit mix, which can help your credit score. Paying off your credit cards with a debt consolidation loan also reduces your credit utilization, the ratio of available credit to your outstanding balance.
What Happens to My Credit Score if I Apply for a Personal Loan?
Every time you submit an application for a personal loan, the lender pulls your credit report which can lower your credit score by a few points. This has an impact, but not enough to make a significant change. However, multiple applications with multiple lenders can have a negative impact on your score. Be selective about your choice of lender from the start and avoid the risk of applying for too many loans.
What Is the Best Way to Find a Debt Consolidation Loan?
A loan matchmaker is the safest and simplest option to find a debt consolidation loan without hurting your credit score. Unlike automated systems, a loan matchmaker is a real person who can help answer your questions and help you find the right loan for your situation. One application provides options from multiple lenders. Even better, checking your options with a loan matchmaker has no effect on your credit score! Save time filling out multiple applications at different lenders, and get further, faster with a loan matchmaker.
If you have questions about debt consolidation loans, speak to the compassionate loan matchmakers at Lendah. Our expert loan professionals will find the best terms tailored to your unique situation. With fast approval and rates starting as low as 3.84% for amounts up to $100,000.
Get started today on our website. Prefer to talk in person? Call us at 833-453-6324 and we’ll get you connected immediately with one of our loan experts.