Shopping Tips of Christmas ; Carrie Coghill, Director of Consumer Education for FreeScore.com suggests these "12 Shopping Tips of Christmas":
1. Make a list with potential items and dollar amounts. The last thing you want to do is to buy on impulse.
2. Have a plan. As with anything in life, a well-thought-out game plan will help make shopping less stressful and ensure that you stay on budget.
3. Before increasing credit on a credit card, or gettting a new card, know your credit scores. An increased credit card balance of $2,000 can lower a credit score by as much as 68 points, and a new credit card can lower a credit score by more than 50 points. This could affect the interest you pay on planned purchases like a car or home in 2011.
4. Don't use a debit card. There's too much potential liability if fraudulent activity takes place. This problem can put your credit score in jeopardy if you can't pay the bills because the stolen money hasn't been returned to your account yet.
5. If you don't have the discipline to pay your credit card off each month, don't use it. Maxing out credit cards will harm credit scores. Instead, use cash or checks for your purchases.
6. Think twice about a store's credit card offer when checking out. As stated in number 3 above, a credit score can be negatively affected due to an "inquiry" being made to the credit reporting agencies each time you apply for a credit card. The long-term impact on your credit score may far outweigh the savings.
7. Be informed when it comes to gift cards. Some gift cards, especially the MasterCard and Visa cards, may have fees associated with them, declining balances over time, and expiration dates.
8. Understand online shopping sales. Online shopping can be a low-cost, no-hassle way to efficiently finish Christmas shopping. In fact, a site like SavingsAce.com offers deals that aren't found on Black Friday or Cyber Monday! However, other sites have deals with extra fees associated with them, making it cheaper to take the time to travel to the store to make your purchase.
9. It is still not too late to shop early. Shopping early can help to alleviate the stress associated with trying to hold out for the best sale of the season.
10. Save receipts. Holding out for that Christmas Eve sale may backfire when the only item left in the store costs three times as much as you wanted to spend. The remedy: Buy early, save receipts, and be prepared to make exchanges if an item is on sale.
11. 'Tis the season for credit fraud. To protect oneself, sign up for a credit-reporting service that also monitors credit scores.
12. Don't wake up in January with a credit card hangover. The best way to get off to a good start in 2011 is to avoid having significant credit card bills show up in January. Gift giving can be enjoyable, but in the end, remember that spending quality time with friends and family is most appreciated!
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