My Bank had an interest rate of 10% I looked around and got a much lower rate from another company that wasnt related to theBank. I thought the bank did not have a vested interest in me being able to pay doen the credit card. Bottom line here are that entities other than your Bank might be the better way to go.
I did almost the same thing as darlingnikki121. Sofi loan works great. Interest rate is good. Your credit score will improve immediately because the installment loan shows better than revolving credit. And you can set automatic payments to one place and never have to think about it.
Just be careful with credit card spending. Once you transfer their debt to the loan, you'll have a lot of available credit. If you're tight month-to-month, it can be tempting to make credit card purchases. Cut up your cards and delete your saved info online. (Don't cancel the cards, because the available credit also improves your credit score). But make sure not to use those cards again. It can be very easy to get yourself in a much bigger hole.
Where did you get a loan with 0% interest for two years? I would love to consolidate my debt but don't understand how people get a loan if already in debt.
Yes it is ok if you can get a better interest rate but it will be a hard inquiry on your credit report and cause your score to drop.
But it will also raise your score later as you pay it off .
Never take loan out on your home and closing credit cards can lower your score .
Do not cancel you credit cards when you balance is 0. Learn how to use each only once a month and pay that balance before the due date. If a REAL emergency comes up you will have a cards to go to. If you cancel your cards it twill ruin you fico. If you don't you your card for some time, maybe a year or so, the card company will cancel it. That does not look good on credit report. Go to each credit reporting company, there are three, and put a lock on your cr cds. Your fico is based on owed vs credit available. As owed goes down fico goes up. Also if you cancel all your cards, you lose your credit history. Not good.