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How to Consolidate Your Credit Cards

Most Americans have come to rely heavily on credit cards, and as a result, face mountains of debt among soaring interest rates and finance charges.

If you have a considerable amount of credit card debt, or if you simply want to lower the interest rate on your current cards, then you owe it to yourself to consider consolidating your credit cards.

Do You Qualify for Credit Card Consolidation?

To consolidate your credit cards, you must have at least fair credit. Unfortunately, individuals with poor credit will have a very hard time receiving offers for credit card consolidation, and if they do, they will likely pay much more in interest rates and balance transfer fees.

However, if you have good credit, then you can secure a great deal on a credit card balance transfer offer, allowing you to consolidate your credit cards and eliminate high finance charges and multiple payments.

How to Consolidate Your Credit Cards

If you want to know how to consolidate your credit cards, there are several steps you should take. The process of learning how to consolidate your credit cards is simple; however, you must take your time and do your homework to be sure that you are getting the best deal to consolidate your credit cards.

The following tips will help you consolidate your credit cards:

  1. Gather all of your outstanding credit cards and add up the total that you want to consolidate. However, pay close attention to the interest rates on your current credit cards, as it will not be beneficial to consolidate your debt onto a card with a higher interest rate.

  2. Once you have assembled your list of credit card debt, look into whether you can consolidate your credit cards onto one of your existing cards. To do this, you will likely need a high credit limit, as well as a competitive balance transfer offer from your credit card company. You may need to contact your credit card companies and ask about their balance transfer offers.

  3. If you cannot consolidate your credit cards onto one of your existing cards, then you will need to open a new credit card account. Finding a competitive balance transfer offer is easy, thanks to the convenience of the Internet. There are many sites that allow you to compare balance transfer offers from many credit cards, thereby making the process of finding a great balance transfer offer conveniently easy.

  4. Before you apply for a credit card onto which you will consolidate your other credit cards, make sure to read the card’s terms and conditions, including the fine print on balance transfer offers, as there may be a considerable balance transfer fee associated with it. Or, the balance transfer offer may only guarantee the low rate for a short period of time (often called a promotional rate).

  5. Gather all of your other credit card details so you can provide this information to the credit card company once your credit card application has been approved. This will allow the credit card company to easily pay off the other credit cards.

Consolidating your credit card debt is a smart strategy for saving on interest rates and finance charges.

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