[richard200593]

Originally Posted by pyroguy

Is it smart to transfer debt from one place to another? Only if the interest rate drops and the term to pay it off stays the same or decreases. The real question is what are you going to do to keep from racking up debt again once this is paid off?

Credit scores are only good if you're looking to borrow money again so a credit score is more like an "I love debt" score. Some will argue that you have to have credit so you can buy a house and that is 100% false. You can get a home loan with a zero credit score using manual underwriting, a term your lender should know, if they don't you're using the wrong lender. IMO, the expectation of jumping your score 100 points is irrelevant.

Personally I would recommend if you can get a lower interest rate and pay the debt off in equal time or less then a transfer of debt is not a bad way to go. Just don't load the cards back up when you transfer the debt and you will be ahead.

Also, DO NOT take a loan out that will put your house as collateral. Credit card debt is unsecured debt where putting a lean against your house is secured debt. If things go south for you financially, you have an option to keep your house in a bankruptcy and still eliminate credit card debt, but if the debt has gone against your house because you transferred it in a refinance loan then that debt is now against your house and cannot be eliminated without losing the house.

Thank you this is definitely what I had in my head and what I was hoping to hear. As stated the debt is from years ago than I could never got on top of, I have a plan in place to only use the cards enough to keep them active. The interest rate I received on the loan I was approved for is slightly better but not by much than my credit card terms, which brings back why I was saying IF my credit goes up a good amount (which I’m basing off of professional opinions and credit analysis tools) could I not turn around get a better loan at a lower rate, pay off this high rate loan in full, and end up with only one installment debt, and a low rate? I know there are a few ifs in this but theoretically it sounds like it should work.