Reducing your "credit utilization" on cards can improve your score over time. The Bad:

Saving money on interest is the primary goal.

One bill is much easier to track than five.

You now focus on paying back the new loan over a set period, usually 2 to 5 years. Common Consolidation Methods

Unlike a credit card, you must pay the set amount every month until the loan is done. Is it right for you?

Once approved, you use the funds to pay your existing creditors in full.

These use your home as collateral. They often have the lowest rates but carry the risk of losing your home if you default. Pros and Cons The Good:

If you clear your credit cards but don't stop spending, you could end up with a loan and new credit card balances.