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