Does consolidating credit card debt affect your credit score
Student loans don’t have their own category or receive any special consideration. Student loan balances generally aren’t treated the same as balances on revolving credit, and FICO places more weight on revolving credit (more on this below).
Yes, they do in several ways, including some you might not expect… An installment loan generally has a starting balance that’s repaid over time with a fixed number of payments.
Your FICO Score is made up of five factors: payment history, amount owed, age of credit history, types of credit used and inquiries (applications for new credit).
35 percent of your score is determined by payment history: whether you pay on time and whether you have had bankruptcies or judgments against you. 15 percent is determined by the age of your credit history.
In general, payment history accounts for 35% of your FICO score. Just one late payment can cause your credit score to drop.
While how much your credit score changes depends on many factors, this example from my FICO shows just how bad it can get.
Thus, you are maxing out that card and adversely affecting your debt-to-credit ratio.