I helped a member who is in his 20’s and had accumulated quite a bit of debt over several credit cards, mostly from things outside his control. All of the credit cards were at least 28% interest, some up to 35%. He was worried that even though he made all the payments on time, and more than the minimum, that his score would be too low to consolidate them all into one loan with a lower rate.
I had him bring all of his recent statements and other paperwork in, and we put the application together. His score was actually about 40 points higher than his credit karma had said, and we were able to consolidate and close every credit card he had into one personal loan at less than 10%.
What would have been years and years of higher interest payments that did not drop the balances on those cards turned into a lower monthly payment that will see him out of debt in less than five years.
