Keep Your Credit Score on the "Nice" List this Holiday Season

Business Wire, Nov 25, 2008

Unexpected drops in your credit score can ruin the holiday season, says CreditReport.com

CANOGA PARK, Calif. -- The holiday shopping season is a time when it's easy to spend a lot of money very quickly, and it's also the time of year that poses the biggest risk to your credit score, according to executives at CreditReport.com.

Thanksgiving week is the perfect time to find out your credit score and to get your 2008 Equifax, Experian and TransUnion credit reports. A higher credit score can help you get a better interest rate on your credit cards, lower your monthly payments, and make it easier for you to get the cash you need during this time of year. The first step is to get your report. The second step is to monitor and manage your credit information.

"The week of Thanksgiving is a great time to check into your credit history and make sure your information is accurate," said Bruce Cornelius, chief marketing officer, CreditReport.com. "If there are mistakes that have lowered your score, take immediate action to correct them. If you're looking to finance a big ticket item, a higher credit score can help you do this. We also advise checking in on your credit score after your holiday shopping is done to make sure someone else didn't use your credit cards for their holiday gifts."

Cornelius offered some tips for consumers this holiday season:

* If your credit score is lower than 700, set limits on your budget and manage how much credit you use on each account. A good rule of thumb is not to carry a credit card balance on any account that is more than 30 percent of your high credit limit for that account. Adding more debt on a single credit card won't help your score. If you do need to use your credit card, spread the usage around to a few cards. Even if that means you get fewer "frequent flyer awards" this year, your credit is ultimately more important to your financial well-being. Stick to a budget and a dollar limit per gift and try paying with cash or check as much as possible.

* Practice good debt management and plan ahead. Your credit report may be negatively impacted by credit inquiries from multiple sources in a short period of time. However, do not worry about reviewing your own report as there is no penalty or risk to your credit history from "self-inquiries."

* Think twice before accepting retailers' credit card offers to save on a small percentage of your holiday purchases. Some of these credit cards charge a very high interest rate and having too many lines of open credit can negatively impact your credit score.

* Don't be afraid of paying with a credit card when shopping online. The convenience and security of online shopping has never been better and using your cards can help you track your spending habits, manage your cash flow between paychecks, and help you budget.

"These days, getting information about your own credit history, copies of your credit reports and credit scores is readily available. At CreditReport.com we make it fast and easy for consumers to get their free credit report and score. And after that we help you to monitor your credit with email alerts and other tools that will empower you to maintain or improve your credit and save money," said Cornelius.

"A free trial subscription to credit monitoring on CreditReport.com is the perfect gift for yourself to start out the new year with peace of mind," he added.

"The most frequently asked questions (FAQs) and answers about credit reports and scores as well as tips for addressing errors in your credit history are readily available on our web site," added Cornelius. "To avoid credit nightmares, we strongly encourage people to check their scores before they start shopping to make sure this holiday shopping season is a successful one for everyone."

About CreditReport.com

Based in greater Los Angeles, CreditReport.com specializes in the research, development and implementation of consumer-based services to be delivered to consumers via the Internet. The CreditReport.com service delivers an up-to-date e-commerce site that provides individuals with their personal credit information. More information can be found at www.creditreport.com/accuracy.