- Know where you stand going in. Before using your credit card this weekend, know what your balance is and where your card's interest rate stands. That gives you a benchmark of where you are financially on your credit card debt. The farther you get from that benchmark, the more financial trouble you're looking at.
- Know what happens when you open a store credit card. Open a store credit card and you can expect to see your credit score to decline, at least for the short term. A better idea: Use your debit card or cash to pay for store purchases and keep your credit score as pristine as possible. "If you are concerned about your credit score, it might be a better idea to pay for holiday shopping with cash," says Heather Battison, TransUnion's senior director of consumer education. "If lenders see a high credit utilization ratio, they might conclude that you're 'maxing out,' or doing more spending than you can pay for."
- Ramp up your credit card payments. Avoid excessive credit card interest by paying off credit cards with the highest interest rates first. As TransUnion says, there's no reason to pay any more in credit card interest than you have to.
- Bring only the essentials. When holiday shopping, empty your wallet -- literally. Bring only your drivers license and any credit or debit card - and leave everything else at home. That means library cards, Social Security cards, club cards and passport. All of those documents - which you don't need for shopping - offer a treasure trove of data for identity thieves to steal.
- Stress the "S." When shopping online, only use retail websites with strict security measures protecting your financial data. A tip: Do business only with online businesses whose URL starts with "https." That extra "s" signifies that the retailer is adhering to the most stringent data security standards.
5 Ways to Save Yourself From Holiday Shopping Disaster
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