Actually, it depends on where you get the loan. There are 3 factors to consider here. The first is, how much will I eventually have to pay in total? This is easily figured out by taking the principal, adjusting for states interest rates, and figuring out your payment duration. If getting a loan through a good financial institution, you should not be paying more than 12 percent on a personal loan... much less than most credit cards. The second is that too many inquiries in a short period of time CAN have a negative impact on your score, but these dings go away quickly, and are less damaging than those caused by missed/late payments. Last but not least, there is the short term flexibility increase. You can often get a loan with terms that mean you are paying off the loan paying the same amount total... or less... than you would have had to play to clear the credit cards, while STILL paying less per month than you were on your credit cards. In short, it is almost always a good idea to consolidate unless either a) your circumstances are way outside the norm, or b) you are going to keep using the cards.
