Whether you’re buried with over 0,000 of student loan debt or in the home stretch of repayment, you’re likely thinking about your future.
And while you’ll hopefully say goodbye to student loan debt, you may need to qualify for a loan, credit card, or other financial product in the future.
The higher your credit card balances are relative to your credit limit, the more it hurts your credit score.
Maxed-out and over-the-limit card balances are the worst of all.
Or wondered what the heck a debt consolidation loan is? Our goal on this blog is to assist you in understanding complicated financial questions and to help you make good decisions when you’re working to pay off your debt.
Your credit score also takes into account how close your loan balance is to the original loan amount.
Paying your loan balances is better for your credit score.
Yes, they do in several ways, including some you might not expect… An installment loan generally has a starting balance that’s repaid over time with a fixed number of payments.
Home mortgages and auto loans typically fall in this category, too.
The best way to consolidate credit card debt under $3,000 could be to get a zero-percent interest credit card and transfer balances from high-interest credit cards over to it.