Is consolidating bad for your credit
You do not include any facts in your question so allow me to invent some of my own to illustrate my points.
Let us use average debt amounts for loans many people pay today.
Rates vary, but as of this writing in March 2012, Wells Fargo offers rates in the 4% to 5.5% range, depending on the region of the country and credit score of the applicant.
Any loan can be consolidated by a cash-out refinance, including a vehicle loan, credit card debt, or student loan.
The disadvantages of a cash-out refinance are daunting.
These loans are known in the banking world as signature loans.
These are available for as little as 0 and up to ,000 for terms as long as five years. Signature loans are available to people with high credit scores and typically have a long-standing relationship with the bank or credit union making the loan. A new-car loan has an interest rate of 4.73%, and a used-car loan costs 7.73% per month, so on an overall cost basis it does not make sense to trade-up to a 16% loan.
According to Credit Karma, the average vehicle loan amount is ,504.