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.