Credit rating

[mkt]

i wanted to consolidate existing debts (credit cards) into one lower monthly payment by applying for a loan but wondered whether this would affect a mortgage application in the near future. Would they look at is as if ive just taken on a debt (even though the repayments are easier) so be reluctant to offer a mortgage? also if i was to get turned down for the loan does this go against me on my credit rating?

[Postdog]

Can't tell you, but a word of advice - if you do get a loan to pay off your cards, don't be tempted to hang on to the cards - get rid of them.

It's just my opinion, but getting a sensible loan to replace a couple of not so sensible ones is hardly a bad move.

[jason1980]

Hi, it shouldn't affect a mortgage application unless you gave yourself a bad credit rating by missing loan payments. Paying off your credit cards will increase your credit score and the loan is looked at as additional credit. Not associated with previous credit as it would showed you cleared them, which is a good thing.

Just dont miss your loan payments!