Don’t let the holidays be tough on your credit score

The holiday season can be tough on your credit score. Here are some ways to avoid seeing your credit score drop during one of the busiest shopping seasons of the year:

Pay your bills on time. Your record of on-time payments is a big factor in the quality of your credit. Late payments, even if you usually pay your bills on time, can really hurt your credit score.

Watch your credit limits. Your credit score will suffer if you max out your credit cards around the holidays, or even if you get close to your limit. Credit scores are determined in part by how much of your available credit you currently use. The lower your total credit card balances in relation to your total credit card limits, the better.

Think twice about store credit cards. Many retailers offer discounts to those who sign up for their credit cards, but their high interest rates make them very costly should you ever carry a balance.

Take steps to avoid identity theft. Identity thieves are out in force during the holidays, trying to steal your personal information online and off. Carefully guard your card in-store and online, shopping only on reputable sites that start with “https.” Better yet, order a free copy of your credit report now and again after the holidays are over, looking for any errors or unauthorized credit accounts. You can order a free credit report from each of the nation’s three credit bureaus once each year. Just go to this link.