There are only seven more days until Christmas. Even though there’s only a week left many will still head out to do some last minute shopping. We wanted to provide some friendly tips and reminders of what to keep in mind while shopping this season.
- It may seem easy to charge holiday gifts on a credit card. Minimum monthly payments normally range from 2%-5% of the total monthly balance. It would take years to pay off this debt if you only pay the minimum monthly payment required by your creditor. Unless you are able to pay the balance off in full refrain from charging it! Also stay clear of any loans that may have ridiculously high interest rates. Rule of thumb is if you don’t have the money it may not be best to charge or take a loan out to purchase the gift.
- Pay close attention to your credit card and bank statements. Look over your limits and balances. There are different factors that may affect your credit limit and you may find your limits have increased or decreased. Exceeding the credit limit does not only decrease your scores, but the creditor may also charge an over the limit fee.
- Checking your statements is also very important this time of year as many may come across fraudulent activity or unauthorized charges. Some crooks may even try to sneak in small charges as little as $10 or less. Be sure to immediately report any unauthorized charges to your credit card issuer to report the fraud. This will keep you from having to pay for items that were never purchased by you. Consider instead of signing your credit cards to indicate for an ID to be checked by writing “See ID”.
- Don’t lend out your credit cards. We have heard stories of consumers lending their credit cards to friends or family who promised to pay back the purchases. As the card holder YOU are the one who is ultimately responsible for the charges made. Additionally if a late payment is made it will affect 35% of your score and don’t forget balances will affect 30% of your score as well.
It’s easy to forget how some decisions may affect you credit wise. We all may have experienced just how easy it is to just swipe a card. At the end of the day it all comes down to remembering to be a responsible shopper, and of course enjoying the Holidays!
MSI Credit Solutions provides superior credit restoration and comprehensive consulting services that are reliable and affordable. For any questions or to schedule a free credit consultation, contact us at (866) 217-9841.
*The information in this article has been provided strictly for educational purposes.
