3 Holiday Credit Card Mistakes to Avoid

How to avoid the post-holiday blue when the credit card statements arrive, and how to avoid damaging your credit during the holiday season

Don’t open new credit lines for small savings
During the holiday season retailers constantly bombard customers with 10%-20% off the entire purchase promotion for opening a store credit card with them.

While it’s very hard to avoid the temptation, keep in mind that these store credit cards usually charge outrageously high interest rate. While it’s true that you saved 10%-20% on the presents you intended to buy in the first place, you end up paying more than what you saved – on interest!

Don’t Overcharge more than you can afford
Who doesn’t like to give presents to loved ones? A new iPhone perhaps? How about a tablet?

Overcharging your credit card can damage your credit and financial status in many ways:

• Credit cards charge high interest rates, and you end up paying more than you’ve bargained for!
• When you carry higher balances on your cards, your utilization ration goes up. This immediately pulls down your credit score, which in itself may adversely affect other payments (e.g. your insurance terms)

Don’t forget to pay your bills before you go away
If you’re planning on going away, make sure you’re current on all your bills. Many people forget to pay their bills on time, especially those who go on a vacation. These late bills go on their credit reports, and the blemish affect their credit score for a long time to come.

Happy Holidays
The Credit-report-101 team.