Beware those special credit card offers that give you 20% off your total purchase! Sure, who wouldn't want 20% off, but did you know that opening and using that card creates what is called an "inquiry" on your credit report? And did you know that every time there is an inquiry on your credit, it LOWERS YOUR CREDIT SCORE? Yes! Despite what the clerk at the store told you, it LOWERS your score! Even if you pay it off at the register as soon as you use it - you have lost points. If you are in the process of buying a house, DO NOT OPEN THESE CARDS! This can cause you to go from a loan "approved" status to a "loan denial" due to the drop in your credit score. (See my related blog, "How To Lose Your Loan Approval" for other tips on saving your credit) You can also lower your score by allowing your balance to exceed 1/3 of your credit line. So even using existing cards to excess can be detrimental. This Holiday season, be a wise shopper. Don't use credit. If you must use credit, keep it to a minimum and pay your balance off within 90 days. Enjoy your health, and time spent with family and friends. Those times are priceless - no credit card needed.
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