How does consolidating credit debt effect a credit rating?

My credit rating is probably better than the average as I pay all my credit bills on time, but I'd like to consolidate all the debt for a lower interest rate, with an eye on paying it all off faster. Would it be better to pay off the balances individually than to consolidate? How will zero credit card balances effect my credit rating?





Any suggestions, and any recommended books, would be appreciated. Thank you!

How does consolidating credit debt effect a credit rating?
Consolidating debt is an ideal way to reduce your amount and tenure of debt. You make a single payment to one lender on a certain date and this will help you clear off the debts faster.





I would recommend you to visit this site for more info about consolidating debt:





http://www.debt-explained.com/category/W...
Reply:I am familiar with consolidating credit debt. You are right, pay it all off faster at a lower interest rate. First, once you've paid off all the debt, leave the cards OPEN. That is the major problem people have, they cut up cards that have high limits and that have been open for years. Do not do that. Leave the accounts open and just cut up the cards if you cannot control yourself enough to not use it. Other than that just keep it to a normal amount 5-10. I prefer the double miles cards or cash back cards. Just keep paying the bills on time. Best of luck.
Reply:As long as the accounts are paid on time and according to the original cardholder agreement, consolidation will not affect your credit rating. If you go through a credit counselor where they negotiate lower rates, yes it will affect you. But if you just get a loan or use a lower interest rate card to transfer higher interest rate balances to, that will not affect your rating. The greatest effect will be the percentage of your total credit that you are using. So paying them off or paying them down will increase your credit score.
Reply:The only negative thing on your report is if you run a lot of inquiries looking around for the good deal. This will lower your score. If you don't already have a lot of credit inquiries and know the card you want then do it! Make sure you're checking things like balance transfer fees and counting them in your equation.