Doing a lot of shopping around the holidays? You have plenty of company! December is the busiest month of the year for most retailers. But snapping up all of those bargains can be hard on your credit score. Here are some ways to keep your credit in shape during the most wonderful time of the year:
Keep on top of your bills. Let’s face it: We’re all busy around the holidays. But how well you pay your bills is a big factor in the quality of your credit. Late payments, even if you usually pay your bills on time, can really hurt your credit score. Not to mention you’ll have to pay added fees.
Think twice about signing up for store credit cards. Many retailers offer discounts to those who sign up for their credit cards, but their high interest rates make them very costly should you ever carry a balance. Ask yourself, ‘Do I really need another credit card?’ Many retailers offer similar discount coupons that can be printed from their websites or Facebook pages. Many retailers will email discount coupons to those who sign up for their email lists.
Watch your credit limits. Your credit score will suffer if you max out your credit cards around the holidays, or even if you get close to your limit. Credit scores are determined in part by how much of your available credit you use. The lower your total credit card balances in relation to your total credit card limits, the better.
Take steps to avoid identity theft. Identity thieves are out in force during the holidays, trying to steal your personal information online and off. Carefully guard your card in-store and online, shopping only on reputable sites that start with “https.” Better yet, order a free copy of your credit report now and again after the holidays are over, looking for any unauthorized credit accounts. You can order a free credit report from each of the nation’s three credit bureaus once each year.