Tis the Season to Protect your Credit

Each year, the holiday season is the time when many of you increase the purchases they make. During this time, you need to be extra vigilant when it comes to keeping your credit scoressafe. Here are a few tips to keep your credit scores safe during the holiday shopping madness:

1. Make a budget. Before you go shopping, take the time to make a budget and stick to it!  If you commit to a specific amount for purchases, you’ll be less tempted to make impulse buys. Careful planning beforehand can make sure that you get a gift for everyone on your list without breaking the bank.
2. Go with reputable retailers. The holiday season is not the best time to shop at unfamiliar retailers. If you are making a purchase via the internet, and the web site does not have proper security features, contain adequate contact information, or otherwise seems risky, don’t shop there. Only purchase from websites that you’ve used in the past successfully – this will minimize your risk of online identity theft.
3. Check your credit limit. Many consumers may have had their credit limits drastically reduced in light of the recent credit crisis. Checking your credit limits before you make your holiday purchases can save you from over-limit fees, as well as the hit to your credit scores from utilizing too much of your available credit. If you have more than one credit card, try to spread out your purchases amongst them, so as to carry a lower balance, rather than maxing out one card.
4. Watch your credit card statements. Companies can and do make mistakes. Be certain that you are not overcharged or double-charged for your purchases this holiday season. Likewise, keep a look out for any suspicious charges that may be an indication of identity theft.

Being aware of the risks, and making a plan to minimize them, will allow you to enjoy the peace of mind when making your holiday purchases and your credit scores. Keeping your holiday spending under control this season can be an excellent time to build your credit, as you make timely payments on the purchases you’ve made for your ones you love.