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Holiday Shopping And Your Credit Score

Rapid Rescore

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Credit scores can take a hit over the holidays if you put your purchases on your credit cards.  Credit utilization composes 30% of your FICO scores, which comes only 2nd to your payment history (35% of your score).

If you carry high balances on your credit cards each month, your scores are lowered because of this.  It’s best to carry no more than 10% of your credit limit on your credit cards each month for a good credit score.  You can literally experience a 50-100 point score drop if you max out your credit cards, or even worse go over the credit limit.

If you find yourself in a position where you’ve maxed out your credit cards and can only make the minimum monthly payments, it would be a good idea to investigate a new “balance transfer” credit card.

These types of credit cards will offer you O% interest for…

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