Finances

from Deer Valley Times, December 2018

Charity

AVOID THE NAUGHTY LIST: DON’T LET THE HOLIDAYS RUIN YOUR CREDIT

Looking for the “perfect gifts,” their fi nances are big causes of anxiety • CREDIT HISTORY: Those who’ve budget. Only use credit cards for an paired with enticing retail dis- for many consumers, according to a never used credit before will likely amount you can pay off and pay the bill counts and deals, can pressure recent Experian survey. However, many have a low score, or no score at all, in full on time. You’ll lose your cheer holiday shoppers to spend more than of these same consumers seem to be on while credit accounts that have been quickly after the New Year if you face a they can afford. As a result, consumers the right track: in the survey, respon- active for a long time refl ect positively mountain of debt.” may max out credit card limits or miss dents listed several smart fi nancial reso- on your score, as does a healthy mix of payments, negatively affecting credit lutions, including 28 percent who want accounts, such as having a mortgage, a A positive credit profi le and history scores. In addition, store credit cards to improve their credit scores, while few credit cards and auto loans. of using credit smartly can open up may offer instant discounts that are almost 50 percent said saving more was fi nancial opportunities, like getting a tempting at the register -- but that new a New Year’s resolution. • STAYING OUT OF HOT WATER: car loan or home mortgage. There are application could decrease your credit Many people believe that fi nancial clear benefi ts to building your credit score. But understanding how your credit transactions like rent, utility and fi le, but if you don’t build it responsibly score is calculated is critical. With this telecommunications payments impact those gains won’t be felt. To plan for the Not having enough money for presents mind, here are some key factors: credit scores, but in fact, these are not holidays and 2019, visit experian.com/ and the strain holiday shopping puts on factored in by many scoring companies. education for information about credit • PAYMENT HISTORY: Accounting However, if you don’t pay bills and they scores, as well as personal fi nance tips. for roughly a third of your credit score, get turned over to a collection agency, paying loans on time is crucial; too this could affect your credit score. “Credit is a tool to be used wisely,” adds many late payments can decrease your Severely delinquent accounts are often Griffi n. “If you check your credit score score. reported to the credit bureaus. regularly and make strategic decisions on when and how much credit to use in the • BALANCE: You never want your “While it’s fun to give to others during short-term, it will benefi t you when you credit card balance to be higher than the holidays, make sure to give yourself absolutely need credit to make a large 30 percent of your credit limit - on a the gift of not getting into debt,” says purchase or for an emergency expense.” single card and across all of them. Keep Rod Griffi n, director of Public Educabalances low to keep your score high. tion at Experian. “Stick to a shopping (StatePoint)