Amid
the hustle and bustle of holiday shopping and festivities, it can be
easy to neglect your finances, particularly when it comes to your
credit. And, recent Bank of America data
shows consumers are reaching for their credit or debit cards more
often—spending 5 percent more versus a year ago.
But even if you’re entering the holiday season with a credit card
balance, keeping your finances and credit score intact doesn’t have to
be a daunting task. Consider the following tips:
*
Prioritize your holiday expenses. Create a holiday budget and stick to it.
Add in money for yourself, since, according to the National Retail
Foundation, 57 percent of people will end up shopping for themselves as
well as their friends
and family during the holidays this year.
Prioritize your holiday expenses. Create a holiday budget and stick to it.
Add in money for yourself, since, according to the National Retail
Foundation, 57 percent of people will end up shopping for themselves as
well as their friends
and family during the holidays this year.
*
When using a credit card for holiday purchases, capitalize on the different rewards your card may offer.
Depending on the card, you may earn cash back that you can put toward paying off your balance.
When using a credit card for holiday purchases, capitalize on the different rewards your card may offer.
Depending on the card, you may earn cash back that you can put toward paying off your balance.
*
Be selective when opening new credit cards.
The 10-15 percent you save on a purchase by opening a store credit card
may end up costing you more in the interest rate on that card. And,
applying for credit increases the number of inquiries
made into your credit report in a short amount of time, which could negatively impact your score.
Be selective when opening new credit cards.
The 10-15 percent you save on a purchase by opening a store credit card
may end up costing you more in the interest rate on that card. And,
applying for credit increases the number of inquiries
made into your credit report in a short amount of time, which could negatively impact your score.
*
Signed up for too many cards? Don’t close them! You end up hurting your credit score by losing your debt to limit ratio as well as the age and mix of your credit.
Signed up for too many cards? Don’t close them! You end up hurting your credit score by losing your debt to limit ratio as well as the age and mix of your credit.
*
Thieves Christmas shop, too! That’s why it’s a good idea to
check your credit report after the holidays to make sure it’s accurate and free of fraudulent activity.
Thieves Christmas shop, too! That’s why it’s a good idea to
check your credit report after the holidays to make sure it’s accurate and free of fraudulent activity.
*
Teach your kids how to shop for the holidays. Give
them a budget and help them manage it. Also consider “credit on
training wheels” options, such as secured credit cards that can be
pre-loaded with a set dollar amount.
Teach your kids how to shop for the holidays. Give
them a budget and help them manage it. Also consider “credit on
training wheels” options, such as secured credit cards that can be
pre-loaded with a set dollar amount.
More information on using and understanding credit is available via
Better Money Habits,
a collaborative effort between Bank of America and the Khan Academy
that provides a new way to learn the “why” and “how” behind personal
finance.
Better Money Habits,
a collaborative effort between Bank of America and the Khan Academy
that provides a new way to learn the “why” and “how” behind personal
finance.
These are all great ways to help with keeping a credit budget, thanks!
kimberlybreid at hotmail dot com
I would agree and thank you Kim for your comments. 🙂