Does consolidating credit card debt mean
You’re in deep with credit cards, student loan payments and car loans.Minimum monthly payments aren’t doing the trick to help nix your debt, and you’re flippin’ scared.Lenders report credit card debt level balances to credit bureaus each month along with a borrower’s relevant credit activity.Thus, credit cards can be an excellent way for borrowers to build out a favorable credit profile over time.But let’s be honest: Your interest rate isn’t the main problem. This specifically applies to consolidating debt through credit card balance transfers.The enticingly low interest rate is usually an introductory promotion and applies for a certain period of time only. Be on guard for “special” low-interest deals before or after the holidays.
Maintaining on-time payments helps a borrower to achieve a higher credit score and qualify for better lending terms.
This type of debt does carry some of the industry’s highest interest rates.
However, credit card borrowers do have the option to pay off their balances each month to save on interest over the long term.
Borrowers can accumulate credit card debt by opening numerous credit card accounts with varying terms and credit limits.
All of a borrower’s credit card accounts will be reported and tracked by credit bureaus.