| The average American spends the first six | | | | thousands of dollars in no time. If you |
| months of every year paying off their | | | | only make the minimum payment each |
| holiday debt from the year before. | | | | month, you will end up paying much more than |
| Overspending, opening new credit | | | | you intended to, and more than the |
| accounts and generally just spreading your | | | | purchase was worth. Even doubling the |
| finances too thin is especially tempting | | | | minimum payment means that you'll pay |
| as you succumb to the "spirit" of the | | | | the card off twice as fast, and save |
| holidays. | | | | yourself hundreds, if not thousands, of |
| That spirit has Americans planning to | | | | dollars in interest. 7. Know the |
| spend an average of $1,096 on holiday | | | | credit lingo. Charge cards, credit cards |
| presents this year, up $207 from 2004. But | | | | and secured cards are not one in the |
| before you dust off your trusty credit | | | | same. A charge card, such as American Express |
| card for its busiest time of the year, | | | | or Diner's Club, requires that you pay |
| read up on these 10 tips that will keep | | | | the balance off at the end of each |
| you and your credit scores merry and | | | | month. If you are late with the payment, you |
| bright. 1. Stay away from high credit | | | | may be charged very high penalty |
| balances and too many accounts. Charging | | | | interest charges. A credit card, on the |
| high amounts to your credit cards and | | | | other hand, allows you to carry over a |
| carrying them over month to month can | | | | balance from month to month. However, it also |
| lower your credit score, even if you are | | | | allows you to accumulate interest |
| making payments. That's because the high | | | | charges. A secured card is a credit card |
| balances could indicate that you may | | | | that is backed by a bank deposit by the |
| have bit off more than you can chew, | | | | consumer. People who may not be able to |
| financially speaking. Opening too | | | | get an unsecured card can often qualify |
| many new credit or charge accounts can also | | | | for a secured card and use it to |
| negatively affect your score -- it may | | | | establish credit. |
| indicate that you're spending more than | | | | 8. Creditors decide whether |
| you can honestly afford. 2. If a | | | | you're a good credit risk. The criteria |
| creditor inquires about your credit score, it | | | | used in determining whether or not you |
| counts against you. Every time you | | | | qualify for a credit card is not set in |
| open a new account, a creditor will check | | | | stone and varies by creditor. In this |
| your credit report. This is what's known | | | | way, you may qualify for one card but that |
| as a "hard" inquiry, and it's figured | | | | doesn't mean you will automatically |
| into the formula for calculating your | | | | qualify for all similar cards. If you |
| final credit score. Too many hard inquiries | | | | are ever denied credit, however, the creditor |
| can, indeed, count against you. "Soft" | | | | must give you a copy of your credit |
| inquiries, however, (such as when you | | | | report, along with an explanation as to |
| inquire about your own credit report) do not | | | | why you were denied.9. Know your rights if |
| get factored in. 3. Pick a card | | | | your card is stolen.Under the Fair Credit |
| that fits your needs. There are all | | | | Billing Act (FCBA), consumers can dispute |
| kinds of credit cards out there -- those that | | | | certain charges on their cards and have |
| offer airline, merchandise or travel | | | | limited liability if fraud occurs. The |
| rewards, those that offer extra | | | | important things to remember are: You |
| warranties or accident insurance for | | | | are not liable for any charges on your card |
| electronics or travel and those that | | | | that appear after you've reported it |
| offer low, fixed interest rates. Depending | | | | stolen. Any charges incurred |
| on your needs and lifestyle, you should | | | | after the card is stolen -- but before |
| choose a card that can benefit you the | | | | you've reported it stolen -- should be waived |
| most. 4. Have your name taken off | | | | after a $50 fee. This holds true as |
| of credit marketing lists. | | | | long as you report the card stolen |
| | | | within a reasonable amount of time (usually |
| If you find it tempting (or just annoying) | | | | 24-48 hours). |
| that credit card companies are mailing | | | | |
| you marketing materials to get you to | | | | 10. Try to use some self-control. |
| sign up for their cards, you can have | | | | |
| your name removed from their lists | | | | Though you may be tempted to splurge on |
| (similar to the National Do Not Call | | | | holiday gifts or other items knowing you |
| Registry).You can do so: Online | | | | don't have to pay right away, remember |
| using the "opt-out" form at By calling | | | | that the bill will eventually come. If |
| 1-888-5-OPTOUT to request a hard-copy opt-out | | | | you know you won't be able to pay for a |
| form. 5. Be aware that | | | | purchase, don't buy it. Likewise, in the |
| closing an account doesn't mean your | | | | event you must charge a large amount of money |
| score will increase. Depending on | | | | for emergency purposes, set up a plan to |
| the situation, closing a credit account could | | | | get it paid off as quickly as possible |
| actually hurt your score because it | | | | so it doesn't spiral out of control.This |
| could increase the balance-to-limit | | | | article was provided by the world's #1 most |
| ratio. However, it may also raise your | | | | popular and trusted holistic living |
| score if you have too many cards open | | | | e-newsletter -- FREE to you right now at The |
| (see #1), or have no effect whatsoever. The | | | | old way of thinking: "holistic living" |
| card you choose to close can also make a | | | | pertains only to personal health. The new way |
| difference. For instance, a card you've | | | | of thinking: "holistic living" means |
| had for a long time that is in good standing | | | | prevention of the negative and adherence to |
| may positively impact your credit score, | | | | the positive in all SIX practical areas of |
| so that would not be the one to choose | | | | life: relationships, finances, career, home |
| to close. 6. Pay more than the minimum | | | | environment, safety and health. With the |
| balance each month. The typical credit | | | | e-newsletter, you will get holistic wisdom |
| card purchase is, on average, 112 percent | | | | from the world's top experts in all six of |
| higher than if using cash. That's | | | | these areas -- completely FREE with a simple |
| because creditors make money from your | | | | sign-up (and a guaranteed no-spam policy! |
| interest payments, which can add up to | | | | |