BayPort CU: Holiday pitfalls

PORTSMOUTH, Va. (WAVY) - Many retailers offer immediate discounts when you apply for their credit account.  Sometimes these discounts can be 15%-20% off that day's purchase.  Is it a good idea to take advantage of these offers while doing your holiday shopping?

-Generally, "no".
-Bait creditors use to get you on their hook.
-Understand the costs.

What are some potential hazards of using these credit options

-Store cards have interest rates near and in some cases over 20%.
-Every time you apply for credit, it affects your credit rating.
-Your credit rating is affected every time you close an account.
-A lower credit score can lead to hundreds of dollars in interest expenses.
-Don't use credit carelessly.

What alternatives do shoppers have if they want to get the greatest bang for their buck

-Save for forecasted expenses.
-"Christmas Club"
-Simplify using credit by using one, low-interest card.
-Earn rewards.

For more information, stop by any of the 15 BayPort Credit Union locations across Hampton Roads.