The Holidays are the Most Wonderful Time of the Year (Unless They Ruin Your Credit)

By
Mortgage and Lending with NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 IL Lic 031.0006220/WI
http://actvra.in/58yr

 

The Holidays are the Most Wonderful Time of the Year

(Unless They Ruin Your Credit)

 

It's that time of the year again ...  


And that means the Holidays are here!  Decorations, holiday songs, family gatherings, eggnog, parties ...

And Shopping!

Like the majority of Americans, you've probably found yourself ... or will find yourself ... doing one or both of the following during the Holiday Shopping Season:

 

  • Standing at a register in a store paying for a holiday purchase
  • Making a holiday purchase online

 

And inevitably, you'll find yourself being asked at the time of check-out ... or at some later date via an email or text ... if you'd like to apply for credit at that store or online site.  Some sort of "special discount", gift, or temporary low-interest rate will most likely be dangled in front of you as an enticement to action. 

Now, I've written on this topic many times in the past.  But I do so once again today because of its timely and great importance.  Especially so, for those that have already entered the home buying/mortgage application process ... or those hoping to buy and finance in the next year or so.


As a Chicagoland - IL/WI loan officer, I've had the opportunity to view many Credit Reports.  And I've seen large amounts of credit/debt that was initially established during the Holiday Shopping Season on those Reports.  New debt that can produce huge credit ramifications for those looking to buy a home.

So I urge you ... 

 

 

STOP!  

Take the time to think it over thoroughly ... whether it be at the cash register or while you're online. 

 

 

Say "NO" to that new credit offer, unless you fall into one of the following categories: 

  • Your Credit/Credit Score can withstand the new credit inquiry
  • You can handle the new debt and make monthly payments on time, consistently, and faithfully
  • You are NOT making application for loan
  • You are NOT already in the mortgage process
  • You are NOT hoping to buy a home in the near future
  • You are NOT maxed-out on present credit cards
  • You have NOT already applied for other store/credit cards
  • You know ALL the terms of the new credit account associated with the offer
  • You know what other credit obligations you have and the total of ALL your debt
  • The "enticement" offer is so valuable it offsets the negatives of taking on more debt
  • You have NO credit history and are trying to establish one for a future home purchase

 

Retailers know and are counting on the fact that you are emotionally tied to making the purchase in-hand.  And that you may possibly be under stress (emotional, physical, and financial) and time constraints to make that purchase.  It's easy to fall prey. 

But make no doubt about it:  While the savings reaped on the initial purchase may be welcomed (and possibly substantial), the retailer is making that offer knowing thatthey will best the customer.  If they didn't think they'd ultimately make money with the offer, they wouldn't be making it.  

Retailers are not charitable organizations ...


So again, STOP.  Take the time to pause and think things through.  Will the new credit serve a good purpose for your finances and credit or cause future financial stress?  

What will be most beneficial to you moving forward?  The immediate savings or the more long-term ones?  Then answer that salesperson or online inquiry accordingly ...


* Hoping to Buy or Refinance a home in New Lenox or elsewhere in Chicagoland - IL - WI?  

 

Contact me!  I'll put my 40+ years of mortgage experience and expertise hard to work on your behalf.

I'm easily found at:

Gene Mundt

Mortgage Originator - NMLS #216987 - IL Lic. #031.0006220 - WI Licensed
 
American Portfolio Mortgage Corp.
NMLS #175656
 
Direct: 815.524.2280
Cell/Text: 708.921.6331
eFax: 815.524.2281
 
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Gene Mundt

 Mortgage Originator  -  NMLS #216987    

                                 IL Lic. #031.0006220  -  WI License #216987                                                                                                    

NMLS #175656

 

Gene Mundt, Mortgage Originator,  40+ years of #mortgage experience, will offer you exemplary mortgage service and advice when seeking:  #Conventional, #FHA, #VA, #Jumbo, #USDA, and Portfolio Loans in #Chicago and the greater Chicagoland region, including:  The #Lincoln-Way Area, #Will County, (#New Lenox, #Frankfort, #Mokena, #Manhattan, #Joliet, #Shorewood, #Crest Hill, #Plainfield, #Bolingbrook, #Romeoville, #Naperville, #Wilmington, #Peotone, etc.), #DuPage County, the City of Chicago, #Cook County, and elsewhere within IL and Wisconsin. 

 

Your Referrals & Testimonials are Always Greatly Appreciated! 

 

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Topic:
Lending / Financial
Location:
Illinois Will County New Lenox
Groups:
Mortgages
Home & Credit Savvy
Buyer Information - What Buyers Need to Know in Today's Market
Bananatude
WillCounty
Tags:
credit cards
debt
holiday shopping
credit advice
applying for credit
mortgage advice and tips
home buying advice and tips

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Rainmaker
2,449,908
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of Manchester NH's Leading Agents

SUch a good point and I have some young buyers now where the Mrs went and racked up all kinds of credit card debt in the last month before they found their dream home, now we find one, and this pops up. And yes they were told not to buy anything on credit before they close on their home, she didnt listen Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi 

Nov 30, 2017 08:50 AM #1
Rainmaker
1,367,859
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Hi Gene - I always say no when they make those credit card offers.  I don't need any more.

Nov 30, 2017 10:36 AM #2
Ambassador
1,235,649
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

I am not saying that there should be a war on Christmas but there should be a war on the rampant materialism which is at the heart of the holiday these days.

Nov 30, 2017 11:02 AM #3
Rainmaker
2,105,153
Nina Hollander
RE/MAX Executive | Charlotte, NC - Charlotte, NC
Your Charlotte/Waxhaw/Fort Mill Area Realtor

Hi Gene... I don't have much to say except "this is a wonderful post with wonderful advice!"

Nov 30, 2017 11:25 AM #4
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3,303,094
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Gene this time of year can be a blessing and a curse, and you have done a great job laying out what can turn it into a curse.

Nov 30, 2017 03:47 PM #5
Rainmaker
2,012,276
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

I like the points you make with that STOP heading, Gene.  Folks can easily get caught up in the "spirit" of the holiday season, but have a financial hang-over at the beginning of the year.

Nov 30, 2017 04:03 PM #6
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2,518,730
Paul S. Henderson, REALTOR®,CRS,
RE/MAX Professionals. - Tacoma, WA
Tacoma Washington Agent/Broker & Market Authority!

Especially when you're in the middle of a home loan and the purchase of your dream home Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi 

Nov 30, 2017 05:22 PM #7
Rainer
113,650
Shahar Hillel
Augusta Financial Inc. - Stevenson Ranch, CA
Mortgage Consultant, Loan Officer.

Gene good morning.

Great points to bring up.

Great post.

Thank you.

Dec 01, 2017 10:40 AM #8
Rainmaker
3,227,977
Joan Cox
Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Gene, great post and so timely this time of year.  Hopefully Buyers already UC are not out shopping and putting purchases on credit!  

Dec 05, 2017 06:59 AM #9
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Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

Do you have any idea what kind of a hit a score takes to adding a new store card?  I am sure it can vary based on score and I'm not asking for a firm number just your best WAEG.

Dec 05, 2017 07:34 PM #10
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Rainmaker
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Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi

708.921.6331 - 40+ yrs experience
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