Make us your home page

Minimize damage done with holiday shopping

Even if we were careful shoppers during the holidays, we easily could have put a dent or two in our credit score. Opening too many new accounts, paying bills late … lots of December damage can occur.

Here is some advice on how to minimize those problems from Shon Dellinger, vice president of, the consumer site for the Fair Isaac Corp., which created the well-known FICO credit scoring system in 1956:

During the holidays, falling behind on bills is more likely than usual for many people. How do late payments hurt your credit score?

Paying your bills on time represents 35 percent of your FICO score. It's a very significant portion. If it's a first offense (paying late), it's not necessarily terribly bad. But if you're a repeat offender … (with) continual late payments across many cards, that's the worst-case scenario. A late payment will stay on your credit file for seven years.

Holiday shoppers often get invited to open a store credit card, in exchange for an instant 15 to 20 percent off their purchase. Those offers can be pretty tempting. Good or bad idea?

Be careful to resist any short-term savings. Don't get more cards than you need. Be aware of what interest rates are carried and what time frame you'd have to pay off the new card. … You can end up carrying higher (interest) charges than the discount you receive on a purchase.

What's the ideal credit score these days? Has the economy dragged down consumers' credit scores?

Right now, anything over 750 is good. We have people who get anywhere from 300 to 850. … There certainly has been some shift downward in scores due to the overall economic conditions.

The financial landscape for consumers has undergone so much upheaval this year, from changing credit card laws to tightened loans from banks and lenders. What's ahead?

We hear the consumer frustration with lenders right now. There needs to be more transparency so consumers understand how lenders view them. If you know your FICO score, you can take steps to manage it and get access to the best rates that your lender offers.

When it comes to credit scores, what kind of scams do you warn consumers about?

No. 1: Make sure you understand what you're buying. Sometimes those "free" offers are really a subscription to a (credit) monitoring product.

So many frustrated consumers are angry with their credit card companies for upping rates and changing terms. Many are canceling their cards. Is that wise?

The danger is that you could be canceling part of your credit history, which could hurt your credit score. … When you cancel a card, it reduces the amount of your available credit overall but doesn't change your outstanding balances on other cards. The result can be a higher "utilization rate" (the proportion of available credit you're using), which could hurt your score. Whatever cards you have, be responsible about keeping outstanding balances low and paying your bills on time.

What's your message to struggling consumers saddled with a crummy credit score?

Don't be ashamed of it. Get back in credit shape. … It'll save you money in the future.

Looking ahead, any bright spots from this recession?

Frugal has become cool. Being cost-conscious and budget-conscious is more acceptable. It'll be very interesting to see if those behaviors persist (in) the economic recovery.

Any year-end advice for consumers?

Use credit only when you need it. Pay your bills on time. And resist those short-term (credit card) "savings" offers.

Editor's Note: By law, you're entitled to a free credit report annually from each of the three credit bureaus: Experian, Equifax and TransUnion. These reports show your bill-paying history as reported by your creditors. To request free credit reports, go to or call toll-free 1-877-322-8228.

Minimize damage done with holiday shopping 12/26/09 [Last modified: Saturday, December 26, 2009 3:30am]
Photo reprints | Article reprints

Copyright: For copyright information, please check with the distributor of this item, Sacramento Bee.

Join the discussion: Click to view comments, add yours

  1. Pinellas construction licensing board needs to be fixed. But how?

    Local Government

    LARGO –– Everyone agrees that the Pinellas County Construction Licensing Board needs to be reformed. But no one agrees on how to do it.

    Rodney Fischer, former executive director of the Pinellas County Construction Licensing Board Rodney, at a February meeting. His management of the agency was criticized by an inspector general's report. [SCOTT KEELER   |   Times]

  2. New owners take over downtown St. Petersburg's Hofbräuhaus


    ST. PETERSBURG — The downtown German beer-hall Hofbräuhaus St. Petersburg has been bought by a partnership led by former Checkers Drive-In Restaurants president Keith Sirois.

    The Hofbrauhaus, St. Petersburg, located in the former historic Tramor Cafeteria, St. Petersburg, is under new ownership.

  3. Boho Hunter will target fashions in Hyde Park


    Boho Hunter, a boutique based in Miami's Wynwood District, will expand into Tampa with its very first franchise.

    Palma Canaria bags will be among the featured items at Boho Hunter when it opens in October. Photo courtesy of Boho Hunter.
  4. Gallery now bringing useful art to Hyde Park customers


    HYDE PARK — In 1998, Mike and Sue Shapiro opened a gallery in St. Petersburg along Central Ave., with a majority of the space dedicated to Sue's clay studio.

     As Sue Shapiro continued to work on her pottery in St. Petersburg, her retail space grew and her studio shrunk. Now Shapiro's is bringing wares like these to Hyde Park Village. Photo courtesy of Shapiro's.
  5. Appointments at Raymond James Bank and Saint Leo University highlight this week's Tampa Bay business Movers & Shakers



    Raymond James Bank has hired Grace Jackson to serve as executive vice president and chief operating officer. Jackson will oversee all of Raymond James Bank's operational business elements, risk management and strategic planning functions. Kackson joins Raymond James Bank after senior …

    Raymond James Bank has hired Grace Jackson to serve as executive vice president and chief operating officer. [Company handout]