use a loan for debt consolidation?

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yes i recently got a 1,000 dollar loan from prosper.com.i was gonna use it to pay something else but at the same time i got the loan i got my income tax refund.what i am asking is should i use that loan to pay off my two credit cards or use the loan money to repay the loan in full?which would stengthen my credit?

3 Comments
  1. Reply
    Jeff
    November 10, 2011 at 5:01 pm

    Your credit is strengthened by paying off what you owe.

  2. Reply
    Ceebee
    November 10, 2011 at 5:16 pm

    Your credit is improved by paying back money you borrowed – on time and in full. And not borrowing too much.

    If that $ 1,000 loan is enough to pay off your 2 credit cards and is at a lower interest rate than the credit cards, then pay off the cards.

    If you owe more than $ 1,000 on your credit cards, just go ahead and pay back the prosper.com loan right away. Then pay off your cards as quickly as possible.

  3. Reply
    Key S
    November 10, 2011 at 5:29 pm

    use it for credit cards, cc have high interest rates

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