Credit Report and Credit Score Online

There are so many sounds to look forward to around the holidays — the warm popping of a yule log in the fireplace, the enthusiastic voices of carolers echoing down a snow-lined road, the squeals of glee coming from the mouths of children as they open their gifts.  However, there’s one seasonal sound heard in greater numbers every year, and that’s the phrase, “Care to sign up for a new credit card today?”

In the mail, at the checkout, almost everywhere you go, it seems that someone is offering you a credit card application. What they don’t tell you, though, is that these cards could end up hurting your personal finances.

Lenders have increased the number of credit card offers after cutting back on them during the recession; in fact, more than 1.2 billion applications were mailed out in the third quarter of 2010 alone, according to Mintel.  In an effort to increase their own revenues, many stores are following suit — adding their own programs and promising big rewards.

However, there is a risk. Applying for too many credit cards may adversely affect your credit report. Banks can see such actions on your credit report and may interpret it as a desperate bid to enhance your short-term purchasing power. On top of that, any reckless card-charging activity could end up affecting a future mortgage, car loan — even your credit score.

If you’re in the market for a credit card this holiday season, be sure to examine the offer carefully.  Choosing the right card for long-term use could go a long way toward improving your finances, but the wrong choice could leave you feeling much less festive in the coming years.

Similar Posts:

• Having a Tough Time Finding Funding for your New Small Business?
• Score Points On Your Credit Score in 5 Minutes
• When Does a Short Sale Make Sense?
• 5 sources of Cash Flow to pay debt: Which do the lenders prefer?
• Getting A New Credit Card