Opening several credit accounts in a short amount of time can appear risky to lenders and negatively impact your credit score. Before you take out a loan or open a new credit card account, consider the effects it could have on your credit scores. Know too, that when you're buying a car or looking around for the best mortgage rates, your inquiries may be grouped and counted as only one inquiry for the purpose of adding information to your credit report. In many commonly-used scoring models, recent inquiries have greater effect than older inquiries, and they only appear on your credit report or a maximum of 25 months.
Higher interest rates than secured loans and (some) credit cards. If you have excellent credit and can pay off the debt in 12 to 18 months, you can likely get a credit card that has 0% interest on balance transfers for a year or longer. Alternatively, if you are a homeowner, home equity loans often have lower interest rates than personal loans. But be cautious; you’re risking your house by putting it up as collateral.

If you’re looking to consolidate your debt, it’s essential that you work with the right lender. You want to be sure that the lender you choose is one of the best in the industry. The internet has brought about plenty of different companies that can help you get the financing you need, but there are also plenty of people looking to take advantage of people in rough circumstances.
Depending on your creditworthiness, you may be able to receive a lower interest rate on a debt consolidation loan than you are currently paying on your debt, saving you money on monthly payments and overall interest. Another option for lowering your monthly payment is with a long loan term. However, a longer loan term means you may pay more interest total.
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