Consumers Can Protect Their Good Credit Rating Or Learn What To Avoid This Holiday Season To Improve Their Credit With 5 Important Tips To Protecting Their Credit Score
Online PR News – 01-December-2010 – – The holidays should be a joyous and wondrous time of year. Unfortunately, too many Americans spend far too much on credit and can cause serious harm to their credit score this time of year. Credit Repair invites those that wish to improve their credit to receive a free credit evaluation, and offers the following tips to avoiding the credit score blues this time of year.
1. Avoid Department Store Offers for Instant Credit and Avoid Opening Up Unnecessary New Lines of Credit.
"Would you like to save 10% today on your purchase today?" Consumers have all been asked that question when paying for purchases. Every retailer would like to offer consumers their own store credit card. Yet department score credit is poor quality credit and the credit scoring system frowns on it. By applying for store credit to save a few dollars, consumers could be hurting their chance of getting an important loan at a good rate until the middle of next year.
2. Avoid Overspending.
Spending affects credit. 30% of a person's credit score is made up of how they manage their debt, and when their credit card balances exceed 30% of their available limit, the credit scoring system red flags them and their score can go down instantly. The logic behind this is that if a person suddenly maxes out their credit cards, it looks to the system as though they are in financial trouble. A person should charge only if they can pay the balance in full before the next statement date.
3. Pay Bills On Time.
Payment history is 35% of a person's credit score. One 30-day late can cost a person 50 points or more. December is traditionally a busiest social time of year and bills can get lost in the shuffle. A person should make staying on top of their bills a priority. When late in paying bills, a person nullifies any preferential finance rate and their account can default to a dramatically higher interest rate. A ding to one's credit score, a high late fee, and a huge increase in interest rates are all big incentives to make sure one stays on time with their bills.
4. Take the Time to Plan and Prepare Gift Giving.
Many people have done it: walk into a store ready to buy a specific item and end up getting lured into a spending spree. A person can prevent this well-woven retailer trap by doing research online. In doing so, a person can avoid the retail traps and retain control of their spending.
5. Manage Credit Wisely.
Keep track of credit card balances and keep them as low as possible. Studies show that as consumers increase their credit card balances, they become increasingly apathetic about their balances and even about adding new debt. By tracking balances, a person will maintain a sense of control over their credit score and their finances.
Credit Repair offers a free credit evaluation which can be taken advantage of at their website: