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    Does consolidating credit cards affect credit score

    While some may believe that deb consolidation is something to avoid, it is actually very good news for your credit score.

    Taking out a new loan to pay off other loans does add one more loan to your credit history, but it also removes the older loans and marks them as paid in full.

    The overall goal is to mix up your credit with different types of loans, so you can increase your credit history and subsequently your credit score.

    Advantage Credit encourages you to read all the information contained in this section for a thorough understanding of your credit score and the credit score meaning.

    This series of pages contains comprehensive information on credit scores and how credit scores work.

    For some people, the progression of using credit to build a solid history for making large purchases such as buying a home begins with an auto loan.

    Applying — and getting approved — for a credit card is a very simple process, but getting approved for a car loan is a bit more difficult.

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