Holiday Credit Control

Has Holiday Spending Been Ruining Your Credit?
During the end-of-the-year holiday season, Americans spend more on gifts than anyone else, and a lot of that spending is through credit cards or merchandise cards.

With major holidays such as Thanksgiving, hundreds of attractive Black Friday sales, and Christmas, it’s more important than ever to take a close look at your finances to ensure you’re not destroying your credit.

The National Retail Federation estimates that the average American spends $700 for over $465 billion during the holidays. That’s a lot of spending, and Thanksgiving and Christmas are the most significant times of year for consumers to rack up credit card debt which can severely damage your credit score if you aren’t maintaining a reasonable debt to credit ratio.

What To Consider Before Swiping Your Credit Card
A few things you should consider before swiping your credit card during Black Friday weekend:

• Keep your Debt-to-Credit Ratio below 50% (or, even better, below 30%): If your credit card limit totals $10,000, you should keep the balance below $5,000 or, for excellent credit, below $3,000. Maxing out your credit card(s), even just for a short time, can negatively impact your credit score, costing you thousands in the long run.
• Pay Off or Make Monthly Payments on Time: If you use your credit cards to buy something for your friends and family during the holidays, make sure you make your monthly payments on time, which may seem obvious, but many consumers, after putting a lot more than usual on their cards, sometimes find it challenging to make a higher payment due to the higher balance but making a payment late can drop your credit score by over 30 points!
  
• Preplan Your Holiday Budget: Preplanning your holiday spending budget can be very beneficial to avoid overspending or getting pressured into spending more than you expected. Check your finances and determine how much you can spend without creating a financial burden on your household. Don’t forget, if you’re using credit cards, make sure you factor in the interest as well since it can affect the total of your monthly costs. Having a pre-planned budget can help you avoid making spontaneous purchases or succumbing to a holiday sale that you come across.
  

Keeping Your Credit Score High Means You Can Spend More
Now, we know nobody wants to be advised they can’t spend a lot when there are so many fabulous sales going on, but while you may be saving money by buying when there is a sale, many people tend to spend a lot more than their finances would usually permit, causing them to fall into heavy debt.

There is some good news, though. When you’re careful with your spending and maintain good credit, your credit score will increase, allowing you to spend more. Why? Well, with a higher credit score, your interest rates will be significantly lower, which can save you hundreds of dollars in interest on your credit cards alone. Additionally, you could save thousands of dollars on larger purchases, like your car or home. Why give your creditors extra money when you could be using that money on all these sweet sales going on?

Need help building your credit score or repairing your credit? Contact Credit Repair Enforcers for a free consultation today! (954) 358-9586.

About CreditRepairEnforcers.com: 
Get the benefits and experience of a firm that concentrates on helping people with credit problems without paying huge setup fees. Credit Repair Enforcers has successfully removed erroneous, unverifiable, outdated, and inaccurate information from our client’s three credit reports for over 20+ years. We assist with all things credit repair and credit building. We have helped people who need assistance with personal, business, and corporate credit repair and credit building. Credit Repair Enforcers fight for your credit rights!