3 Ways to Protect Your Credit Score During the Holidays
With the recent Equifax data breach that affected 143 million consumers, protecting our credit scores has risen in importance in our minds again-and it should. As you probably already know, your credit score determines whether or not you can qualify for loans and how much borrowing that money will cost you. These days it also affects your rates for car insurance, whether or not you can easily sign up for a new cell phone plan, and even if you’ll have to slap down a chunky cash deposit when switching on new utilities.
As we get close to the holidays, it’s easy to start swiping credit cards online or at the department stores without realizing how much it can affect our credit scores. For most people, holidays mean spending money outside of the usual budget for family entertainment and meals, airline tickets, and gifts.
Exactly how the major credit bureaus calculate your credit scores is a matter of high math. Many of the factors aren’t easy to understand, but there are a few of them that we know for sure-and with some care, you can sail through the holidays without any negative hits.
Important Day-to-Day Credit Score Factors:
The list goes on, but with these in mind, here are three ways you can protect your good scores during these times when out of the ordinary spending is something most of us do.
1). Be careful about running up credit cards.
2). Avoid unnecessary credit inquiries.
3). Have a plan to pay down balances.
I have touched on just a few of the overall factors that affect your credit in this article. There are many other things to consider in addition to those I’ve mentioned. If you are planning to start shopping for a new home, or refinance your existing loan in the next few months, it’s a good idea to make sure that your credit score is as good as possible.
Do you have questions about where you stand and how to make excellent choices about using credit? I will make myself available to consult with you and come up with a plan that works.
In the meantime, I wish you a joyful holiday season that’s filled with warmth and good times.
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