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. Big rents and changing tastes drive dives off St. Pete's 600 block

    Music & Concerts

    ST. PETERSBURG — Kendra Marolf was behind the lobby bar of the State Theatre, pouring vodka sodas for a weeknight crowd packed tight for Bishop Briggs, the latest alternative artist to sell out her club.

    Sam Picciano, 25, left, of Tampa and Molly Cord 24, Palm Harbor shop for record albums for a friend at Daddy Kool Records located on the 600 block of Central Avenue in St. Petersburg, Florida on Saturday, May 20, 2017. OCTAVIO JONES   |   Times
  2. How Hollywood is giving its biggest stars digital facelifts


    LOS ANGELES — Johnny Depp is 53 years old but he doesn't look a day over 26 in the new "Pirates of the Caribbean" movie — at least for a few moments. There was no plastic surgeon involved, heavy makeup or archival footage used to take the actor back to his boyish "Cry Baby" face, however. It's all …

    This combination of photos released by Disney, shows the character Jack Sparrow at two stages of his life in "Pirates of the Caribbean: Dead Men Tell No Tales."  Johnny Depp, who portrays the character, is the latest mega-star to get the drastic de-aging treatment on screen
[Disney via Associated Press]
  3. Precinct Pizza to cover new neighborhood


    NEW TAMPA — In 2006, husband and wife, Rick and Jessica Drury opened up Precinct Pizza in Channelside.

    Precinct Pizza looks to gain greater popularity in New Tampa with its Bambino Bleu Cheese piazza. Photo courtesy of Precinct Pizza.
  4. Da Burger Joint's menu goes beyond 'da burger'


    OLDSMAR — After owning and operating restaurants in four different states, Danny Falcone recently opened his ninth restaurant in Oldsmar.

    The old-fashioned onion burger is a favorite at the Da Burger Joint in Oldsmar. Photo by Danielle Hauser.
  5. Vegan kitchen comes to Downtown Tampa


    Charles Rumph and Tim Fedorko's first attempt at launching a vegan restaurant concept in Tampa "was a disaster."

    Farmacy Vegan Kitchen + Bakery serves wraps, acai bowls, smoothies and juices and plant-based baked goods like strawberry cupcakes. Photo courtesy of Charles Rumph.