Be Credit Smart this Holiday Season
This holiday season, as you are out shopping for those must-have gifts, here are a few tips to prevent damage to your credit scores:
1) Use credit sparingly. If you cannot afford to purchase a gift, decide if you really need to buy it.
2) If you are putting purchases on your credit cards, be mindful of your current balances and credit limits. As your credit card balances get closer to your credit limit, your credit scores can be effected negatively. And, if you go over your limit, that can have a dramatic impact.
3) Every time you apply for credit there is an inquiry into your credit history and scores. Several inquiries can negatively impact your credit scores. A lot of creditors and retailers offer incentives to open a new credit account. But, are these incentives worth a lower credit score?
4) If you are using your credit cards for convenience, you don’t have to wait to receive your bill in the mail to pay for your purchases. Once you are done shopping, you can pay your bills online directly from your checking account. This will keep your balances lower and your credit scores higher.
5) With all of the extra mail that comes this time of year, it is easy to overlook or misplace a credit card statement or other bill. Make sure you are on top of your monthly payments. Even one late payment can have a significant effect on your credit scores.
Happy holidays to you and yours!
If you have any questions regarding mortgages, buying a home, refinancing your mortgage, or your general finances, I am always here to help.
Please contact me at BarkerLoans@gmail.com
