Do you have to close your credit card accounts when you get a debt consolidation loan

Quick And Easy Personal
Loans Up To $2500

By CreditNinja
Modified on June 18, 2023

The short answer is no, you don’t have to close your credit card accounts when you get debt consolidation loans. Paying off a credit card with a consolidation loan, or with a normal payment, is a great accomplishment. And it may actually help your credit score to leave the credit card open with a zero balance. But if having it open will tempt you to rack up more charges, then closing it may be beneficial. 

Using a consolidation loan to pay off your credit cards can be a great idea. If you’re able to get a personal loan with a lower interest rate than the credit card debt, then you could save money. Plus, consolidating your credit card debt into one new loan is much easier to manage. It may help with your monthly budget to only focus on one loan payment instead of several. 

If you have a decent or good credit score, then you may be able to get a good interest rate on a bank loan or credit union loan. And since Credit card interest rates tend to be higher than rates from banks and credit unions, this could save you some money. Even if you can’t get a better interest rate, there’s still some benefit to consolidating your debts. 

So what do you do once those credit cards are paid off using the new consolidation loan? The best thing for your credit score is to actually leave the accounts open with a zero balance. This tells the credit bureaus (the companies that determine your credit score) that you have credit available to you but you’re not using it. This looks good and could potentially raise your credit score. 

This is called your credit utilization ratio. It’s the measure of how much credit is available to you, versus how much you’re actually using. But as we mentioned, if leaving these credit accounts open will just lead to more credit card debt, then it’s probably wise to close them. It may not be worth the slight credit score increase if you’ll be too tempted to use those cards in the future.

Loan Application
Can I get a personal loan with a credit score of 500
Is 12% a good rate for personal loan
Which bank gives personal loan easily
Is a personal loan taxable income
What is a personal signature loan
Can I get a business loan with my ein number
Is a $5,000 loan hard to get
What do you need for a personal loan
Can I get a personal loan without proof of income
Can I get a loan with no credit
What is the minimum credit score for a personal loan
Can you get a personal loan completely online
Are there any payday loans that don’t do credit checks
Do all payday loans use teletrack
How many payday loans can you get in one day
How many payday loans can you have in iowa
How do I avoid loan origination fees
Mortgage refinancing with bad credit
What is the minimum to get a credit card consolidation loan
What are credit card consolidation loan interest rates going for
What is the interest rate on debt consolidation loans
Why debt consolidation loans are bad
What is a fair interest rate for debt consolidation loans
When applying for a loan which type is better, credit card refinancing or debt consolidation
Where To Get an $800 Loan, No Credit Check, Safe and Secure
How can I get a $500 loan with no credit check
How to get a debt consolidation loan with poor credit and existing loans
How hard is it to get a credit card consolidation loan
How to answer the questions they ask when applying for a credit card consolidation loan
Where can I get the best loan for a credit card consolidation
When you get a consolidation loan and pay off credit cards does this cancel the card
Do you have to close your credit card accounts when you get a debt consolidation loan
How to get a credit card consolidation loan with a low credit score
Mortgage refinancing with bad credit

Quick And Easy Personal Loans Up To $2500*