News - Thrifty Living

POSTED: Monday, Jan. 05, 2009

Don't apply for credit cards to get a shopping bargain

I know, it's tempting: You want the best price on a product so you sign up for store credit cards to take advantage of a discount or freebie offer.

Cashier clerks at many big retailers are even trained to ask you moments before you make your final purchase whether you want to take advantage of a deal by applying for a credit card account.

Unfortunately, if you plan on closing down that account soon after, your credit score will suffer. Believe it or not, Keeping accounts open, even if you don't use them regularly, is one way to keep your credit score in good standing.

Another way to maintain good credit health is to make sure you have a variety of credit - mortgage, auto loan, credit cards. By keeping up with those accounts, you show your financial liability to creditors.

And of course, the absolute worst thing you can do is pay a credit bill late. Not only does your credit score lower, you may end up paying higher interest on the card you paid late on and others in your wallet.

Paying with plastic is convenient. But, as your grade-school teacher used to say: Keep your thinking hat on.