Mismanaging your credit during the holidays can impact your credit rating - WMC Action News 5 - Memphis, Tennessee

Posted by: George Metaxas, 11/19/04, 3:57 p.m.

Mismanaging your credit during the holidays can impact your credit rating

The holiday shopping season is kicking into gear. And financial experts urge consumers to manage their credit wisely as they begin their holiday spending.

Mismanaging your credit during the holidays can impact your credit rating and purchasing ability for years to come, experts say. Money Management International calculates that if you charge one thousand dollars on a credit card that carries an 18 percent interest rate and then only make the minimum monthly payments -- it will take almost six years to pay off that debt. HSBC, one of the country's leading financial services companies, is spearheading Your Credit Counts, a campaign to educate consumers about credit matters. Loretta Abrams of HSBC offers a few tips for keeping your credit use in line this holiday season.

**Before shopping, set a spending budget to avoid running up your credit cards with gift purchases that may not be affordable.

**And if you're tempted to open store credit accounts to earn discounts, keep in mind that opening multiple credit cards in a short period of time could actually lower your credit score.

For more tips on managing your credit, visit www.YourCreditCounts.com.

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