Know Your Rights

Holiday Shopping Tips to Avoid Damaging Your Credit

Shoppers spend at least twice as much as normal during the month of December as opposed to other months.  Controlling your spending is tougher than ever.  The race to spend began as the Halloween decorations were being taken down.  But if you are aware of some simple facts about your credit, you can keep your spending in control.

Avoid the credit hangover.  A credit hangover is buying more than you can afford.  This can easily avoided by planning your purchases.  Make a list and stick to it.  Also, research the best prices prior to purchasing.   With the internet, this is easy.  

Avoid last minute offers to open a credit card and save money on your purchases.  This sounds tempting, but you must realize that such a move can affect your credit score.  Opening a new credit card allows a "hard inquiry "to your credit report.  Hard inquiries indicate that you are actively trying to obtain credit, whether it is a store credit card, car loan or mortgage.  

Avoid maxing out your credit limit on your credit card.  When using a credit card, keep the balance limit in mind.  A credit card that is maxed out to its limit can lower your credit score.

Avoid using multiple credit cards.  Purchasing with multiple credit cards makes it seem as if you are not spending as much.  However, we all know that this is not true.  Make cash purchases whenever possible and if you must use a credit card, use the one with the lowest interest rate.

If you are having problems with your credit or have questions regarding your report, contact SmithMarco, P.C. for a free consultations. 

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